https://www.taxtmi.com/caselaws?id=793196 A bona fide purchasing dealer cannot be denied input tax credit merely because the supplier failed to deposit the tax collected, where the transactions are genuine and statutory requirements have been complied with. The Department may proceed against the defaulting supplier, but can sustain demand, interest or penalty against the purchaser only on material showing lack of bona fides or collusion. Applying that principle, the HC quashed the assessment and appellate orders and set aside the impugned demand, while leaving open the authorities' liberty to act in accordance with law if the transactions are later found to be non-bona fide or collusive. en-us Thu, 04 Jun 2026 00:00:00 +0530 Wed, 10 Jun 2026 17:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=793196 A bona fide purchasing dealer cannot be denied input tax credit merely because the supplier failed to deposit the tax collected, where the transactions are genuine and statutory requirements have been complied with. The Department may proceed against the defaulting supplier, but can sustain demand, interest or penalty against the purchaser only on material showing lack of bona fides or collusion. Applying that principle, the HC quashed the assessment and appellate orders and set aside the impugned demand, while leaving open the authorities' liberty to act in accordance with law if the transactions are later found to be non-bona fide or collusive. Case-Laws GST Thu, 04 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=793196