https://www.taxtmi.com/caselaws?id=329238 Input tax credit cannot be reversed against a purchasing dealer who has complied with the prescribed purchase and payment requirements merely because the selling dealer failed to file returns or pay tax. The Madras HC applied the statutory scheme under Section 19(1) of the Tamil Nadu VAT Act, 2006 read with Rule 10(2) of the Tamil Nadu VAT Rules, 2007, holding that the Revenue must proceed against the defaulting selling dealer instead of fastening the burden on the buyer. Reversal based only on website reports, cross-verification, or dealer return defaults was therefore unsustainable, and the impugned orders were quashed. en-us Thu, 02 Jun 2016 00:00:00 +0530 Sat, 17 Mar 2018 12:19:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=329238 Input tax credit cannot be reversed against a purchasing dealer who has complied with the prescribed purchase and payment requirements merely because the selling dealer failed to file returns or pay tax. The Madras HC applied the statutory scheme under Section 19(1) of the Tamil Nadu VAT Act, 2006 read with Rule 10(2) of the Tamil Nadu VAT Rules, 2007, holding that the Revenue must proceed against the defaulting selling dealer instead of fastening the burden on the buyer. Reversal based only on website reports, cross-verification, or dealer return defaults was therefore unsustainable, and the impugned orders were quashed. Case-Laws VAT and Sales Tax Thu, 02 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=329238