Sangeet Lodha, J. - (1.) BY way of this writ petition, the petitioner has questioned legality of assessment order dated 26.3.14 passed by the Assessing Authority, the Assistant Commissioner, Commercial Taxes Department Circle B, Jodhpur under Section 23/24 of Rajasthan Value Added Tax Act, 2003 (for short "the Act"), disallowing input tax credit claimed.
(2.) THE petitioner, proprietorship concern, a dealer registered under the Act, engaged in trading business entered into purchase transactions with various dealers, namely, M/s. Anand Trading Company, M/s. APN Industries, M/s. Pooja Trading Company, M/s. Vishal Traders and M/s. Shree Arbuda Trading Company, Marudhar Traders, Mateshwari Trading Company etc. during the assessment year 2011 -12. The petitioner filed the quarterly returns under Section 21 of the Act, claiming input tax credit quantified at Rs. 1,32,51,684/ -. The Assessing Authority vide assessment order dated 26.3.14, while reversing the input tax credit to the tune of Rs. 1,19,72,734/ - created the demand of Rs. 1,48,28,751/ - against the petitioner. Hence, this petition.
(3.) PRECISELY , the case of the petitioner is that as per the provisions of Section 18(3)(v), the Assessing Authority may deny the input tax credit to the assessee if the assessee fails to prove the genuineness of purchase transaction on being asked to do so, but then, before holding a purchase transaction to be non genuine, the Assessing Authority has to arrive at the finding of inadequacy, insufficiency or involvement of element of fraud/forgery in relation to the documents submitted by the assessee for claiming input tax credit. It is submitted that an assessee is not required to prove that the tax has been paid to the State at the first point of sale in series of ensuing sales. Learned counsel submitted that it is impossible for a dealer to trace the entire chain of purchase transactions and procure the proof of payment of tax by the dealer who originated the sale. According to the petitioner if the selling and purchasing dealers have collected and deposited the tax on the value of the underlying sale, any anterior or posterior link in the series would have no bearing on the transactions. It is submitted that the Assessing Authority has disallowed the input tax credit to the petitioner to the tune of Rs. 1,19,72,734/ - by passing a non speaking order, merely on the ground that petitioner has not been able to produce the proof of payment of tax at the point of origin of sale and therefore, orders impugned deserve to be set aside.;