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2016 (4) TMI 1390 - HC - VAT and Sales TaxValidity of Section 22(12)(d)(a) of the West Bengal Value Added Tax Act, 2003 - challenge on the ground that merely because a registered dealer deals with another registered dealer whose registration is subsequently cancelled does not imply that the concerned transaction at a time that both the dealers held valid registration certificates could be questioned - HELD THAT:- There appears to be substantial merit to the challenge. All that a registered dealer has to do before entering into any transaction with another registered dealer is to assess whether such other dealer has a valid registration certificate. Once a dealer satisfies himself as to the validity of the registration certificate of other dealer, it may be too harsh to question the transaction upon the subsequent cancellation of the registration of the selling dealer, unless an element of connivance is established. The report dated February 22, 2016 is set aside inasmuch as the same denies the input tax credit cited by the petitioner merely on the ground that the other dealers' registration certificates were cancelled ab intio and without taking into account that at the time that this petitioner entered into the relevant transactions with the other dealers, the other dealers held the valid certificates the other dealers' names figured on the respondents' website. Petition disposed off.
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