https://www.taxtmi.com/caselaws?id=786506 Whether denial of input tax credit under Section 16(2)(c) can be invoked against a purchasing dealer where the seller failed to deposit tax: the provision must be read down to avoid unequal treatment by confining its operation to transactions that are collusive, fraudulent, or not bona fide. The court relied on the statutory distinction between non fraudulent and fraudulent assessment procedures and on principles disfavoring penal consequences for taxpayers acting in good faith; because the impugned assessment contained no findings of collusion or fraud and proceeded under non fraud procedure, the purchaser was held entitled to the claimed input tax credit. en-us Tue, 10 Feb 2026 00:00:00 +0530 Fri, 13 Feb 2026 09:18:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786506 Whether denial of input tax credit under Section 16(2)(c) can be invoked against a purchasing dealer where the seller failed to deposit tax: the provision must be read down to avoid unequal treatment by confining its operation to transactions that are collusive, fraudulent, or not bona fide. The court relied on the statutory distinction between non fraudulent and fraudulent assessment procedures and on principles disfavoring penal consequences for taxpayers acting in good faith; because the impugned assessment contained no findings of collusion or fraud and proceeded under non fraud procedure, the purchaser was held entitled to the claimed input tax credit. Case-Laws GST Tue, 10 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786506