The Punjab and Haryana High Court, while deciding a batch of 424 writ petitions, laid down detailed guidelines governing denial or reversal of ITC under Section 16(2)(c), including examination of invoices, receipt of goods, supplier proceedings and the applicable statutory framework.
The Court directed that proper officers must pass reasoned orders, provide personal hearing, consider supporting evidence and ensure that tax is not recovered twice; the guidelines apply to pending as well as future proceedings.
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