Purchaser Can't Be Punished For Failure Of Seller To Deposit Tax: Gauhati High Court
4 months, 1 week ago

Purchaser Can't Be Punished For Failure Of Seller To Deposit Tax: Gauhati High Court

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The Gauhati High Court has held that a purchasing dealer cannot be punished for the act of the selling dealer in case the selling dealer had failed to deposit the tax collected by it.The bench of Chief Justice Vijay Bishnoi and Justice Suman Shyam has observed that the Department is precluded from invoking Section 9 of the DVAT to deny ITC to a purchasing dealer who has bona fide. The Gauhati High Court has held that a purchasing dealer cannot be punished for the act of the selling dealer in case the selling dealer had failed to deposit the tax collected by it. The bench of Chief Justice Vijay Bishnoi and Justice Suman Shyam has observed that the Department is precluded from invoking Section 9 of the DVAT to deny ITC to a purchasing dealer who has bona fide entered into a purchase transaction with a registered selling dealer who has issued a tax invoice reflecting the TIN number. The court relied on the decision of the Delhi High Court in the case of On Quest Merchandising India Private Limited vs. Government of NCT of Delhi & Ors., in which it was held that the purchasing dealer is being asked to do the impossible, i.e., to anticipate the selling dealer who will not deposit with the government the tax collected by him from those purchasing dealers and therefore avoid transacting with such selling dealers.

Tax Court Department Act Tin Deposit Selling Itc Dealer Purchasing Gauhati High Court Dvat  purchaser  failure  92g  gauhati  tax  cant  dealer  court  purchasing  high  act  selling  collected  punished  deposit  seller  bona

History of this topic

Indirect Tax Cases Monthly Round Up: January 2024
10 months, 2 weeks ago

Indirect Tax Cases Monthly Round Up: January 2024

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Supreme Court Hiring Of Motor Vehicle Or Cranes Is Not 'Sale Of Goods' If Control Over Equipment Is Retained By Contractor, VAT Can't Be Levied: Supreme Court Case Title: M/s. Case Title: Murli Packers Through Its Proprietor Rakesh Kumar Jain vs. State Of U P Through Secretary, Institutional Finance Case Citation: 2024 LiveLaw 52 On Wednesday, the Allahabad High Court …

Buyer Not Liable For Seller's Default: Calcutta High Court Set Aside ITC Reversal Demand Against Buyer
1 year, 4 months ago

Buyer Not Liable For Seller's Default: Calcutta High Court Set Aside ITC Reversal Demand Against Buyer

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The Calcutta High Court has held that before directing the recipient of service or buyer to reverse the input tax credit and remit it to the government, the department ought to have taken action against the selling dealer.The bench of Chief Justice T.S. The Calcutta High Court has held that before directing the recipient of service or buyer to reverse …

KVAT Act | Dealer Claiming Input Tax Credit Must Prove Transaction Beyond Reasonable Doubt : Supreme Court
1 year, 9 months ago

KVAT Act | Dealer Claiming Input Tax Credit Must Prove Transaction Beyond Reasonable Doubt : Supreme Court

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The Supreme Court has held that under Section 70 of the Karnataka Value Added Tax Act, 2003, a dealer claiming Input Tax Credit on purchase ought to prove and establish actual physical movement of goods and genuineness of transaction. The dealer claiming ITC has to prove beyond doubt the actual transaction which can be proved by furnishing the name and …

Dealer Can’t Undervalue Goods To Escape Tax, Under The Garb of E-Way Bill Isn’t Required For Goods Below Rs. 50,000: Allahabad High Court
1 year, 10 months ago

Dealer Can’t Undervalue Goods To Escape Tax, Under The Garb of E-Way Bill Isn’t Required For Goods Below Rs. 50,000: Allahabad High Court

Live Law  

The Allahabad High Court has ruled that under the garb of the protection given under Rule 138 of CGST Rules, 2017, dispensing the requirement of E-Way bill for movement of goods valuing below Rs.50,000, a dealer who is a manufacturer, cannot be allowed to send his goods to different consignees by undervaluing the same, and without the Taxing Authorities proceeding …

Sales Tax or VAT Dues Payable Can't Be Claimed As Priority Over Dues Of Secured Creditor: Gujarat High Court
1 year, 10 months ago

Sales Tax or VAT Dues Payable Can't Be Claimed As Priority Over Dues Of Secured Creditor: Gujarat High Court

Live Law  

The Gujarat High Court has held that Sales tax or VAT dues payable cannot be claimed as priority over dues of the secured creditor.The division bench of Justice N.V. Anjaria and Justice Bhargav D. Karia has observed that the charge in respect of the property in question created for sales tax dues is of no avail and has no efficacy …

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