The buyer is required to establish his own credentials and not those of the Seller: A welcome judgement by Andhra Pradesh High Court in Arhaan Ferrous and Non-Ferrous Solution Pvt Ltd vs Deputy Assistant Commissioner
Writ Petition Nos. 15481, 15482, 15486, 15487 of 2023, 3-8-23]

Obligation of purchasing dealer to establish his bonafide and not that of the Seller.

Detention of goods and vehicles on the ground that the supplier has no place of business but making movement of goods without any details of purchase.

Whether the Proper Officer is justified in confiscating the goods of the petitioner?

Held:
Though the Proper Officer may initiate proceedings against the supplier under Section 130 of the Act in view of his absence at the given address and not holding any business premises.

However, the Officer cannot confiscate the goods of the purchaser merely on the ground that the purchaser happens to purchase goods from the said supplier.

The purchasing dealer has to establish the mode of payment of consideration and the mode of receiving goods from the supplier through authenticated documents.

Except that the purchasing dealer cannot be expected to speak about the business activities of the supplier or whether he obtained GST registration by producing fake documents. In essence, the petitioner-purchaser has to establish their own credentials but not those of supplier.
Warm Regards,

TEAM CHARTERED ACCOUNTANTS
Beri R & Associates
Phone:- 011-35000618