GST INDIA Biz
GST India .biz — Case Law Details
Detailed GST Case Law Information

State of Karnataka v. Ecom Gill Coffee Trading Private Limited

Date of Order: March 13, 2026
Case Law No: GIB-SC-2023-02
Subject: Interpretation of burden of proof for claiming Input Tax Credit under VAT law; requirement of proving genuineness of transactions (Section involved: Section 70 of the Karnataka Value Added Tax Act, 2003)
Description:

Facts:
The respondent purchasing dealers claimed Input Tax Credit (ITC) on purchases made from various sellers. The Assessing Officer disallowed ITC on the ground that several selling dealers were deregistered, had not filed returns, or denied transactions, raising doubts about genuineness. The first Appellate Authority upheld the disallowance. However, the Tribunal and High Court allowed ITC primarily on the basis of invoices and payments through cheques. 


Court Decision:
The Supreme Court held that the burden under Section 70 lies on the purchasing dealer to prove the genuineness of transactions. Mere production of invoices or payment through banking channels is not sufficient. The dealer must establish actual physical movement of goods and provide supporting evidence such as transport details, delivery acknowledgment, and seller details. Since the purchasing dealers failed to discharge this burden, the Court set aside the High Court and Tribunal orders and restored the disallowance of ITC by the Assessing Officer. 


Cases Referred by Court:
•    Corporation Bank v. Saraswati Abharansala (2009) 19 VST 84 (SC) 
•    Bhagadia Brothers v. Additional Commissioner of Commercial Taxes (Karnataka High Court) 
•    Madhav Steel Corporation v. State of Gujarat (Gujarat High Court) 
•    Shreeji Impex v. State of Gujarat (Gujarat High Court) 
•    On Quest Merchandising India Pvt. Ltd. v. Government of NCT of Delhi 

 

Other Case Law

Lakshmi Mobile Accessories vs Joint Commissioner (Intelligence & Enforcement) & Anr.

Adjudication proceedings – issuance of show cause notice and passing of assessment orders under Section 74 of the CGST Act, 2017 – separate adjudication orders for different financial years.

Facts:The petitioner challenged the show cause notice dated 29.07.2024 issued un...

Read More
SFC Global Commodity Private Limited vs Union of India & Ors.

Whether the Appellate Authority can reject an appeal merely on the ground of non-appearance of the appellant without dealing with the written grounds raised in the appeal memo.

BackgroundThe petitioner-assessee challenged an order dated 24.09.2025 passed by...

Read More
The Hongkong and Shanghai Banking Corporation Ltd v. State of Maharashtra & Ors.

Whether the GST Appellate Tribunal (GSTAT), constituted under the Central Goods and Services Tax Act, 2017, has jurisdiction to pass interim orders — specifically, whether it can stay recovery proceedings during the pendency of an appeal before it.

BackgroundAn Order-in-Original was passed under the CGST Act on 18th December 20...

Read More