The State of Karnataka v. Ecom Gill Coffee Trading Private Limited

The case of The State of Karnataka v. Ecom Gill Coffee Trading Private Limited is a landmark judgment of the Supreme Court of India dealing with the burden of proof for claiming Input Tax Credit (ITC). Although decided under the Karnataka Value Added Tax Act, 2003 (KVAT Act), the principles laid down have been extensively relied upon in GST litigation relating to fraudulent ITC claims, fake invoices, and the evidentiary burden resting upon purchasing dealers.

The respondent, Ecom Gill Coffee Trading Pvt. Ltd., was engaged in the business of purchasing and exporting coffee. During assessment under the KVAT Act, the respondent claimed Input Tax Credit (ITC) on purchases of green coffee beans from several registered dealers.