GSTAT Lucknow Bench says Invoices and Bank Payments Cannot Substitute Proof of Goods Movement

The GST Appellate Tribunal, Lucknow Bench, rejected New Star Trading Company's challenge to ITC denial involving purchases from two suppliers found to be non-existent. It held that invoices, e-way bills and banking payments, without credible evidence of actual movement and receipt of goods, were insufficient to establish ITC eligibility. The Tribunal distinguished cases involving genuine transactions and held that the evidence in the present matter pointed to fictitious supplies. However, it set aside the penalties imposed under both the adjudication and appellate orders and remanded the matter for fresh determination in accordance with Section 75(13).