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Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →The Madras High Court set aside the GST input tax credit (ITC) denial order against M/s. Akal Trade Links and sent the dispute back to the tax authority for reconsideration. The court’s reported reasoning was that the authority should examine whether the supply was genuine rather than treat missing lorry receipts and weighment slips as the end of the inquiry, given the other evidence described in the record. The ruling did not finally allow the ITC claim.
What the Madras High Court decided
In M/s. Akal Trade Links v. Assistant Commissioner (ST), Kangeyam Assessment Circle, the court set aside the assessment order dated 28 April 2023 and remanded the matter for a fresh decision. It directed the petitioner to be allowed to submit additional documents within 15 days and the authority to issue a fresh order within three months after giving a reasonable opportunity of hearing. Those deadlines apply to this case, not generally to other GST disputes.
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The decision is reported as dated 5 June 2026, with neutral citation 2026:MHC:2006. It was made in W.P. No. 20601 of 2023, with W.M.P. Nos. 19985 and 19986 of 2023, a writ petition under Article 226. The reported judge is Senthilkumar Ramamoorthy. The petition was disposed of without costs, and the connected miscellaneous petitions were closed. LawText case record
Why the ITC denial was challenged
The dispute concerned assessment year 2018–19 and eight invoices issued between January and August 2018 for purchases from Eco-friendly Coco Products. Akal Trade Links challenged the order confirming a proposal to deny ITC. It said the supplier was registered when the supplies occurred, the invoices recorded vehicle numbers, the supplier reported the transactions in returns and paid the tax, and the supplier arranged transportation.
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The authority’s position, as reported, was that the claimant bore the burden of proving eligibility under Section 155 read with Section 16 of the Tamil Nadu GST Act, 2017. It argued that lorry receipts and weighment slips had not been produced to establish that the goods actually moved. The case note says all eight invoices in the paper book included vehicle numbers.
Why the court ordered another examination
The reported basis for remand was the combination of evidence and the way the denial had been reached. The court considered further examination of the genuineness of the supply warranted in light of the supplier’s reported returns and tax payments and the other recorded contentions, including vehicle details on the invoices and supplier-arranged transport. The authority had confirmed the proposal merely because lorry receipts and weighment slips were absent, according to the case reports. TaxO case summary
The procedural point is important: the court required a fuller reconsideration on this record. It did not decide that the goods were conclusively supplied or that the claimant had proved every condition for ITC.
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1Scan for outdated or missing drivers - takes under a minute2Repair Windows errors before they cause bigger problems3Fix the driver behind crashes, sound loss and screen glitchesWhat the ruling does—and does not—establish
- It establishes a case-specific remand: the authority must reconsider the dispute and the additional documents, after a reasonable hearing.
- It does not make transport records unnecessary: the reports do not support a general rule that lorry receipts or weighment slips can always be omitted.
- Supplier tax payment alone is not a guarantee of credit: the reported decision does not say that supplier returns and tax payment, by themselves, establish the recipient’s entitlement.
- It did not finally allow ITC: eligibility remains for the authority to decide on remand.
- The burden point remains relevant: the reported case frames the burden under Section 155 read with Section 16 as resting on the claimant; the remand is not a blanket exemption from proving the claim.
TaxGuru also reports the case and offers commentary, which should be distinguished from the court’s holding. TaxGuru case analysis
What the remand means for the parties
Akal Trade Links was permitted to place additional documents within 15 days under the court’s direction. The respondent was directed to provide a reasonable hearing and pass a fresh order within three months. The available case reports do not establish what the authority decided after remand or whether an appeal followed, so no later outcome should be inferred from this order.
For taxpayers facing a similar dispute, the practical lesson is not to assume that invoices or supplier tax compliance settle the issue. The record may need to address whether the goods were actually supplied and moved, and the authority’s decision should engage with the evidence submitted rather than stop at one missing document. This is a practical reading of the reported case, not a test formally laid down by the court.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to read this decision alongside another ITC dispute
When assessing whether Akal Trade Links is relevant to another case, compare the facts and procedural outcome rather than relying only on the shared issue of missing transport documents:
- What evidence supports actual supply and movement of the goods?
- Was the supplier registered during the relevant period, and what evidence exists about reporting and tax payment?
- What specific ground did the authority give for denying credit?
- Did the authority address the full record or rely on the absence of a particular document?
- Did the court finally decide ITC eligibility, or—as here—send the matter back for reconsideration?
These comparison questions are practical criteria drawn from the reported facts; they are not a formal legal test announced in the judgment.
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