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2016 (6) TMI 947 - HC - VAT and Sales TaxInput tax credit - TNVAT - non-filing of return by the selling dealer - challenge to the proceedings initiated by the AO where the Input Tax Credit (ITC) availed by the petitioner, has been reversed, on the ground that, it is in excess of what the petitioner is entitled to avail - Held that:- The ratio deducible from the decisions are that, ITC shall not be disallowed for the reasons that the seller had not been assessed, since the selling dealer has not filed returns. - Section 19 (1) states that input-tax credit can be claimed by a registered dealer, if he establishes that the tax due on such purchase has been paid by him in the manner prescribed and that was accepted at the time when the self-assessment was made. The pre-revision notices and the orders clearly stated that the petitioner-dealer had paid the tax to the selling dealer. If that be the case, it was held that the petitioner's case therein squarely fell under the proviso to Section 19 (1) of the Act. The liability had to be fastened on the selling dealer and not on the petitioner-dealer which had shown proof of payment of tax on purchases made. - Decided in favor of assessee.
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