https://www.taxtmi.com/caselaws?id=258437 Input tax credit cannot ordinarily be reversed from a purchasing dealer merely because the selling dealer allegedly failed to remit tax, where the purchaser has paid tax and validly claimed credit. The department must verify the purchase records before fastening liability, and if the documents show that tax was not paid on the purchases, recovery may be made in accordance with law. A notice based only on the seller's default is therefore not sufficient for final recovery without examination of the relevant transactions. The matter is to be treated as a show-cause notice, with the dealer required to produce purchase records and submit an explanation for fresh adjudication on verification. en-us Fri, 13 Mar 2015 00:00:00 +0530 Thu, 09 Apr 2015 06:03:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=258437 Input tax credit cannot ordinarily be reversed from a purchasing dealer merely because the selling dealer allegedly failed to remit tax, where the purchaser has paid tax and validly claimed credit. The department must verify the purchase records before fastening liability, and if the documents show that tax was not paid on the purchases, recovery may be made in accordance with law. A notice based only on the seller's default is therefore not sufficient for final recovery without examination of the relevant transactions. The matter is to be treated as a show-cause notice, with the dealer required to produce purchase records and submit an explanation for fresh adjudication on verification. Case-Laws VAT and Sales Tax Fri, 13 Mar 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=258437