2025 (10) TMI 607

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....H 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 that arose for consideration befo....

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.... 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) of Delhi Value Added Tax Act, 20....

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....eriod. 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 has bona fide entered into purchas....

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....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 the DVAT Act." 6. The aforesaid d....