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2019 (5) TMI 1562 - HC - VAT and Sales TaxRefund claim - subsequent cancellation of registration - DVAT Act - CST Act - denial of refunds on the ground of 'Zero Demands' - HELD THAT:- The judgment of this Court in On Quest Merchandising India Pvt. Ltd. [2017 (10) TMI 1020 - DELHI HIGH COURT] read down Section 9 (2) (g) of the DVAT Act and precluded the Department from invoking it to deny input tax credit to a purchasing dealer who has ‘bonafide entered into a purchase transaction with a registered selling dealer was issued a tax invoice reflecting the TIN number’. In terms of the said decision, the above demands created for July 2012, December 2012 and May and June 2010 cannot be justified. The orders creating such demands simply state that the purchase made from a registered dealer “could not be verified”. This is not a good enough a reason to invoke Section 9(2)(g) of the DVAT Act as explained by this Court in its judgment in On Quest Merchandising India Pvt. Ltd. This Court sets aside the fresh demands created by the Respondents for the aforementioned periods i.e. May 2010, June 2010, July 2012 and December 2012 - Respondents are directed now to issue the refund orders for the aforementioned periods and ensure that the refund amounts are credited to the account of the Petitioner not later than 30th June 2019 - petition allowed.
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