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2015 (4) TMI 1360 - HC - VAT and Sales TaxLiability to pay the entire tax liability although the petitioner had paid the tax to the selling dealer and claimed input-tax credit - HELD THAT:- This Court finds hardly any justification in the submission of the learned Government Advocate, since a direction to pay 25% of the tax liability would amount to double taxation, which is impermissible in law. The petitioner, being a dealer in leather, as per Section 19(1) of the TNVAT Act, for the purchases effected from the local registered dealer, has become eligible to claim and avail ITC. Besides, the vendors, who sold the goods to the petitioner, are also being a registered dealer under the TNVAT Act, having issued tax invoices after collecting the taxes at 5%, the petitioner was rightly under the bonafide belief that the vendors would have paid the taxes collected from them to the Sales Tax Department in Annexure-II of their monthly returns filed for the years 2009-10, 2011-12, 2012-13 and 2013-14. The impugned orders are set aside - All the writ petitions shall stand allowed.
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