https://www.taxtmi.com/caselaws?id=200047 A purchasing registered dealer cannot be denied input tax credit merely because the selling dealer later failed to file returns or remit tax, where the purchaser produced invoices and other supporting records and complied with the prescribed statutory procedure. The Tamil Nadu VAT framework recognises credit when the purchaser establishes payment in the manner required by the Act and Rules. The proper remedy is to proceed against the defaulting selling dealer rather than reverse credit against the buyer. On that basis, the reversal of input tax credit and the consequential penalty were held unsustainable, and the assessment order was set aside. en-us Wed, 08 Jun 2016 00:00:00 +0530 Sat, 17 Mar 2018 20:42:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=200047 A purchasing registered dealer cannot be denied input tax credit merely because the selling dealer later failed to file returns or remit tax, where the purchaser produced invoices and other supporting records and complied with the prescribed statutory procedure. The Tamil Nadu VAT framework recognises credit when the purchaser establishes payment in the manner required by the Act and Rules. The proper remedy is to proceed against the defaulting selling dealer rather than reverse credit against the buyer. On that basis, the reversal of input tax credit and the consequential penalty were held unsustainable, and the assessment order was set aside. Case-Laws VAT and Sales Tax Wed, 08 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=200047