2025 (10) TMI 607

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....JUSTICE NONGMEIKAPAM KOTISWAR SINGH For the Appellant(s): Mr. N. Venkataraman Ld, A.S.G., Mr. Mukesh Kumar Maroria, AOR, Mr. Udai Khanna, Adv., Ms. V.C. Bharathi, Adv., Mr. B.K. Satija, Adv., Mr. Gaurang Bhushan, Adv. For the Respondent(s): Mr. Varinder Kumar Sharma, AOR. ORDER PER 1. Heard learned counsel for the appellant and perused the record. 2. In these appeals the short issue....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....o registered seller dealer(s) and, therefore, entitled to the benefit of ITC and, accordingly, allowed the said benefit to them after due verification of invoices. 4. A similar issue later arose for consideration before the High Court in On Quest Merchandising India Pvt. Ltd. vs. Government of NCT of Delhi and Ors., 2017 SCC OnLine Delhi 13037 in the context of the provisions of Section 9(2) (g....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....urn filed for the respective tax period. Reading down clause (g) of sub-section (2) of Section 9, in On Quest Merchandising India (supra), the Delhi High Court held: "62. In light of the above legal position, the Court hereby holds that the expression 'dealer or class of dealers' occurring in Section 9 (2) (g) of the DVAT Act should be interpreted as not including a purchasing dealer who ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the tax collected by him from the purchasing dealer, the remedy for the Department would be to proceed against the defaulting selling dealer to recover such tax and not deny the purchasing dealer the ITC. Where, however, the Department is able to come across material to show that the purchasing dealer and the selling dealer acted in collusion then the Department can proceed under Section 40A of th....