📢HC Calcutta: Grants Additional Opportunity to Prove 'Movement of Goods' for Input Tax Credit
B.K. Trading vs. The Superintendent of Central Tax

Facts of the Case
▪️ Issue: The petitioner filed a writ petition challenging the denial of Input Tax Credit (ITC) due to alleged non-proving of movement of goods.
▪️ Petitioner's Claim:
▪️ Asserted possession of valid tax invoices with taxes duly paid.
▪️ Contended that cancellation of supplier's registration retrospectively should not penalize them or deny their rightful ITC.

Department's Position:
▪️Insisted on proof of movement of goods to validate the transaction's genuineness.
▪️Proposed that the petitioner should submit documents substantiating the movement of goods before further adjudication.

Court Judgment
▪️ Direction to Assessee: Ordered the petitioner to treat the original order as a show cause notice and submit a reply with supporting documents demonstrating movement of goods.
▪️ Verification: Directed the adjudicating authority to verify the documents submitted by the petitioner regarding the movement of goods.
▪️ Outcome if Failure: Stipulated that if the petitioner fails to substantiate the movement of goods, the Department should uphold the findings of the original adjudicating order.
▪️ Grant of Opportunity: Granted an additional opportunity to the petitioner to present evidence before the adjudicating authority.

Conclusion: The Calcutta High Court's decision provides the petitioner with another chance to prove