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2014 (7) TMI 1095 - HC - VAT and Sales TaxClaim of input tax on the purchases from the three dealers - Held that:- Assessee has claimed deduction of input tax on the basis of three invoices showing purchase of go ods from three dealers. Admittedly, these dealers have not remitted the tax recovered from the assessee. Their whereab outs are not known. As rightly pointed out by the Tribunal, mere existence of invoices is no proof that under the said invoices, materials are purchased and tax is paid. The Assessing Authority was not justified in drawing the inferenc e that the said three dealers are bogus merely on this fact. He should have made an enquiry to find out the genuineness of the transaction as set out by the Tribunal. It is only after such enquiry if the Assessing Authority is satisfied that the transaction in question is genuine one, the assessee has paid the money, he has received the goods and necessary entries are made in the books of accounts of the assessee, then merely because of the dealer has not remitted the tax would not enable the Assessing Authority to deny the benefit to the assessee. As the said exercise had not been done, after setting aside the order, the Tribunal was justified in directing the Assessing Authority to undertake that exercise as suggested by the Tribunal. In the facts and circum stances of this case, we are satisfied that the approach of the Tribunal is just and proper and is in accordance with law. - Decided against assessee.
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