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2022 (12) TMI 45 - MADHYA PARDESH HIGH COURTInput tax credit - cancellation of license of three dealers - Registration / license of supplier dealers have been cancelled - HELD THAT:- There was a dispute about the cancellation of the license of only 3 dealers, but all the transactions made by the petitioner with 17 dealers have been cancelled. No inquiry has been conducted as to whether those dealers had paid tax or not for which the petitioner claimed the input tax rebate. It is also important to note that so far as the purchase made from M/s. Abhishek Sales Industries is concerned, his license was cancelled on 27.8.2008 whereas the petitioner purchased the item on 18.5.2008 and 17.5.2008 i.e. much before purchases. So far as purchases from M/s. Bhawani Trading Co. is concerned, his licence was cancelled on 29.2.2008 and the petitioner purchased the coriander on 30.6.2008. No inquiry has been conducted as to whether the petitioner had any knowledge about the cancellation of their license at the time of purchase. All the sales were made within the Mandi premises. The license of M/s. Abhishek Sales Industries and M/s. Santosh & Brothers were cancelled after the purchase was made by the petitioner. Due to the cancellation of the license of these 3 dealers, the respondents disbelieved all the 17 transactions and disallowed the benefit of input tax rebate to the petitioner. Therefore, the manner in which the impugned order dated 23.6.2011 has been passed, no stamp of approval can be given in these wit petitions. The orders dated 23.6.2011 and 29.11.2012 are liable to be quashed and the matter is liable to be remanded back to the Assessing Authority to pass a fresh order after conducting a detailed inquiry - Petition allowed by way of remand.
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