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2016 (11) TMI 1320 - HC - VAT and Sales TaxInput tax credit - registration of sellers cancelled - selling dealer not paid taxes - Form-W - whether the purchasing dealers can be held liable for non-payment of tax by the selling dealers on account of retrospective cancellation of their registration certificates? - Held that: - this is no longer res intergra as it has been settled by this Court in several decisions. The recent decision on the point is in JINSASAN DISTRIBUTORS v. COMMERCIAL TAX OFFICER (CT), CHINTADRIPET ASSESSMENT CIRCLE,CHENNAI [2013 (4) TMI 615 - MADRAS HIGH COURT] relied upon, wherein it was held that Retrospective cancellation of the registration certificate of the selling dealer can have no effect on the person who acted upon the strength of the registration certificate when it was in force. Selling dealer has not paid taxes - Held that: - This issue was considered by this Court in the case of SRI VINAYAGA AGENCIES v. ASSISTANT COMMISSIONER (CT), VADAPALANI-I ASSESSMENT CIRCLE, CHENNAI AND ANOTHER [2013 (4) TMI 215 - MADRAS HIGH COURT], where it was held that Sub-section (16) of Section 19 states that the input tax credit availed is provisional. It, however, does not empower the authority to revoke the input tax credit availed on a plea that the selling dealer has not paid the tax. It only relates to incorrect, incomplete or improper claim of input tax credit by the dealer. Belated submission of Form-W - Held that: - this Court has taken into consideration the Circular issued by the Commissioner of Commercial Taxes, in Circular No.22/2014 dated 12.05.2014, that even though Statutory Forms such as Form-W are submitted belatedly, that by itself will not be the reason to reject the same. Therefore, to that extent, the respondent was not justified in outrightly rejecting the Form-W, belatedly submitted by the petitioner. Therefore, the matter has to be remanded back to the respondent with a direction to consider Form-W. Petition partly allowed - matter on remand.
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