Tax Credit Dispute: Authorities Must Provide Fair Hearing Before Disallowing Input Tax Claims Under Proper Procedural Safeguards

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....HC set aside ex parte assessment order disallowing Input Tax Credit (ITC) for Superior Kerosene Oil distribution under Public Distribution System. The court found the order unsustainable due to lack of proper verification and failure to provide the petitioner an opportunity to substantiate ITC claim. The ex parte order violated principles of natural justice by not allowing the petitioner to produce books of accounts and evidence supporting the tax credit claim. The court emphasized that while the burden of proving ITC claim rests with the taxpayer, the assessee must be given a fair chance to present evidence before passing an adverse order.....