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2014 (12) TMI 1243 - KARNATAKA HIGH COURTInput tax credit - genuineness of purchase - It is stated that unless the tax collected on sales by the selling dealer is remitted to the Government, the set-off of tax paid on purchase from such dealer does not qualify for rebate/input-tax credit - The submission of the learned Additional Government Advocate is that for having found some discrepancies, the notice has been issued under section 39(1) of the Act. In the event, the petitioner furnishes all the documents that could be looked into and the matter could be closed and subsequently, demand would be raised depending upon the correctness of the documents produced by the petitioner. However, the stand of the counsel for the petitioner is that it is not only the purchase of goods but, they have collected the tax at their level which could have been taken note by the Department where they have collected the tax and the same has been remitted to the Government or that could have been taken for reassessment, if there is any suppression or misrepresentation. Held that:- it is for the respondent-authorities, before passing the order, to call upon the petitioner to submit the documents and consider the said documents produced, give an opportunity of hearing to the petitioner and thereafter, pass appropriate orders in accordance with law. - Petitioner may be given due opportunity to cross-examine the dealers who have filed the returns to ascertain whether there may be suppression at their level.
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