Ghumte Raho Ltd, a tour operator, availed input tax credit (ITC) in respect of certain transactions where no such supplier was existent or from a person not doing any business from the registered place of business. Juris

The Commissioner or an officer authorised by him in this behalf, not below the rank of an Assistant Commissioner, having reasons to believe that credit of input tax available in the electronic credit ledger has been fraudulently availed or is ineligible in as much as a) the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed under Rule 36: issued by a registered person who has been found non-existent or not to be conducting any business From any place for which registration has been obtained; or without receipt of goods or services or both; or b) the credit of input tax has been availed on the strength of tax invoices or debit notes or any other document prescribed under rule 36 in respect of any supply, the tax charged in respect of which has not been paid to the Government; or c) the registered person availing the credit of input tax has been found non-existent or not to be conducting any business from any place for which registration has been obtained; or d) the registered person availing any credit of input tax is not in possession of a tax invoice or debit note or any other document prescribed under Rule 36. In the present case, since the Input Tax Credit (ITC) has been availed in respect of transaction for which no supplier exists or from a person not doing business from its registered place of business, the credit can very well be restricted by the Commissioner or other officer not below the Assistant Commissioner. Such order of restriction however can be withdrawn by the officer when the circumstance leading to the order of restriction does not exist. In any case, such order shall lapse after the expiry of twelve months from the date of imposing such restrictions.