Mandatory invoice compliance governs input tax credit, and cash transactions without invoices defeat the credit claim.

Input tax credit under the Rajasthan Value Added Tax framework depends on compliance with the prescribed invoice conditions, because Section 18 must be read together with Section 72 of the Act and Rule 38 of the Rules. Rule 38(3) was treated as mandatory, so credit cannot be allowed unless the dealer fully satisfies the invoice requirements in Rules 38(1) and 38(2). Rule 18 operates subject to that invoice-based scheme. As cash transactions were admitted and invoices were absent for several dealings, the factual basis for credit was not established as required by law, and the input tax credit was disallowed.

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Issues: Whether input tax credit could be allowed when the purchasing dealer had not complied with the invoice requirements prescribed under the Rajasthan Value Added Tax Act, 2003 and the Rajasthan Value Added Tax Rules, 2006.

Analysis: Input tax credit under Section 18 of the Rajasthan Value Added Tax Act, 2003 was held to be governed not in isolation but along with Section 72 of the same Act and Rule 38 of the Rajasthan Value Added Tax Rules, 2006. Rule 38(3) was treated as mandatory, providing that no input tax credit shall be allowed unless the dealer fully complies with Rule 38(1) and Rule 38(2). The Court also noted that Rule 18 of the Rajasthan Value Added Tax Rules, 2006 operates subject to the invoice framework, and that the statutory scheme requires the relevant provisions to be read conjointly. As the petitioner admitted cash transactions and the absence of invoices in respect of several transactions, the factual basis for input tax credit was not established in the manner required by law.

Conclusion: Input tax credit was rightly disallowed, and the challenge failed.

Final Conclusion: The impugned order was sustained and the revision petition was not entertained in exercise of revisional jurisdiction.

Ratio Decidendi: A claim for input tax credit can be denied where the dealer does not satisfy the mandatory invoice conditions prescribed by the statute and rules, since the provisions governing credit must be read together and compliance is a prerequisite to allowance.

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