https://www.taxtmi.com/caselaws?id=794830 State VAT notifications denying or reducing input tax credit cannot be applied to declared goods that are both purchased and resold in the course of inter-State trade where section 15(b) of the Central Sales Tax Act mandates reimbursement of State tax. The note explains that Article 286(3) read with section 15(b) limits the State's power, so a notification under the Gujarat VAT framework must be read down to the extent it curtails that reimbursement. It further states that where a show cause notice rests entirely on such impermissible denial of credit for declared goods transactions, the notice loses its legal basis. The notification's broader validity is otherwise maintained. en-us Tue, 07 Jul 2026 00:00:00 +0530 Mon, 13 Jul 2026 09:18:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794830 State VAT notifications denying or reducing input tax credit cannot be applied to declared goods that are both purchased and resold in the course of inter-State trade where section 15(b) of the Central Sales Tax Act mandates reimbursement of State tax. The note explains that Article 286(3) read with section 15(b) limits the State's power, so a notification under the Gujarat VAT framework must be read down to the extent it curtails that reimbursement. It further states that where a show cause notice rests entirely on such impermissible denial of credit for declared goods transactions, the notice loses its legal basis. The notification's broader validity is otherwise maintained. Case-Laws VAT / Sales Tax Tue, 07 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794830