Input tax credit risk: buyers lose credit and face prosecution if sellers fail to file returns for tax invoices. Buyers must ensure selling dealers both issue tax invoices and file returns; a seller's 2B statement alone is insufficient. If a seller fails to file or disappears, the buyer may lose input tax credit, be required to pay the tax with interest and penalty, and face criminal prosecution for relying on invoices from noncompliant dealers.
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Provisions expressly mentioned in the judgment/order text.
Input tax credit risk: buyers lose credit and face prosecution if sellers fail to file returns for tax invoices.
Buyers must ensure selling dealers both issue tax invoices and file returns; a seller's 2B statement alone is insufficient. If a seller fails to file or disappears, the buyer may lose input tax credit, be required to pay the tax with interest and penalty, and face criminal prosecution for relying on invoices from noncompliant dealers.
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