https://www.taxtmi.com/caselaws?id=269546 Input tax credit cannot be reversed merely because the selling dealer failed to report the transaction in its returns when the purchasing dealer had paid tax, held the Madras HC. The buyer had reflected the purchase in its return and the tax payment was admitted; denial of credit based only on the seller's omission was therefore unsustainable. Applying the earlier interpretation of Section 19(16) of the Tamil Nadu Value Added Tax Act, 2006, the Court held that the provision does not permit reversal of credit on that sole ground, and the department's remedy lies against the defaulting seller. The demand for tax and penalty was set aside. en-us Fri, 25 Sep 2015 00:00:00 +0530 Tue, 21 Jun 2016 12:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=269546 Input tax credit cannot be reversed merely because the selling dealer failed to report the transaction in its returns when the purchasing dealer had paid tax, held the Madras HC. The buyer had reflected the purchase in its return and the tax payment was admitted; denial of credit based only on the seller's omission was therefore unsustainable. Applying the earlier interpretation of Section 19(16) of the Tamil Nadu Value Added Tax Act, 2006, the Court held that the provision does not permit reversal of credit on that sole ground, and the department's remedy lies against the defaulting seller. The demand for tax and penalty was set aside. Case-Laws VAT and Sales Tax Fri, 25 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=269546