https://www.taxtmi.com/caselaws?id=270537 Input tax credit cannot be reversed against a purchasing dealer merely because the selling dealer failed to remit tax or report the transaction, where the purchaser had valid tax invoices, accounted for the purchases, paid tax to the seller, and reflected the transactions in returns. The authority's reliance solely on the seller's default was inconsistent with the governing provisions and settled principle that a compliant purchaser should not be penalised for the seller's omission. The proper course is to proceed against the defaulting selling dealer. The reversal of input tax credit and the consequential penalty order were held unsustainable and were set aside. en-us Fri, 25 Sep 2015 00:00:00 +0530 Fri, 24 Mar 2017 12:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=270537 Input tax credit cannot be reversed against a purchasing dealer merely because the selling dealer failed to remit tax or report the transaction, where the purchaser had valid tax invoices, accounted for the purchases, paid tax to the seller, and reflected the transactions in returns. The authority's reliance solely on the seller's default was inconsistent with the governing provisions and settled principle that a compliant purchaser should not be penalised for the seller's omission. The proper course is to proceed against the defaulting selling dealer. The reversal of input tax credit and the consequential penalty order were held unsustainable and were set aside. Case-Laws VAT and Sales Tax Fri, 25 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=270537