https://www.taxtmi.com/caselaws?id=166320 Input tax credit on opening stock under the Kerala VAT regime was disallowed where the benefit of sales tax paid on purchases was not passed on to customers. On the factual findings from the accounts, audit statement and gross profit pattern, the tax element was found embedded in the sale price, showing that the assessee had recovered the purchase tax along with VAT without the required set-off. The matter therefore fell within the second proviso to section 11(13) of the Kerala Value Added Tax Act, and the credit could be demanded back as reverse tax. en-us Tue, 06 Sep 2011 00:00:00 +0530 Wed, 17 Sep 2014 16:07:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=166320 Input tax credit on opening stock under the Kerala VAT regime was disallowed where the benefit of sales tax paid on purchases was not passed on to customers. On the factual findings from the accounts, audit statement and gross profit pattern, the tax element was found embedded in the sale price, showing that the assessee had recovered the purchase tax along with VAT without the required set-off. The matter therefore fell within the second proviso to section 11(13) of the Kerala Value Added Tax Act, and the credit could be demanded back as reverse tax. Case-Laws VAT and Sales Tax Tue, 06 Sep 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=166320