*Mere production of Invoices and Payment by cheque is not sufficient to prove the genuineness of purchase to claim ITC. (Supreme Court)*

*The State of Karnataka Vs. M/s Ecom Gill Coffee Trading Private Limited (SC) CIVIL APPEAL NO. 230 OF 2023 order dated March-13-2023.*

*Although the above order belongs to VAT regime but have importance in GST and Income Tax Laws also.*

1-    The dealer claiming ITC has to prove beyond doubt the actual transaction which can be proved by furnishing the name and address of the selling dealer, details of the vehicle which has delivered the goods, payment of freight charges, acknowledgement of taking delivery of goods, tax invoices and payment particulars etc.

2-   The aforesaid information would be in addition to tax invoices, particulars of payment etc.

3-   In fact, if a dealer claims Input Tax Credit on purchases, such dealer/ purchaser shall have to prove and establish the actual physical movement of goods, genuineness of transactions by furnishing the details referred above and mere production of tax invoices would not be sufficient to claim ITC.

4-    In fact, the genuineness of the transaction has to be proved as the burden to prove the genuineness of transaction as per section 70 of the KVAT Act, 2003 would be upon the purchasing dealer.