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2016 (8) TMI 132 - MADRAS HIGH COURTInput tax credit - revision of the assessment orders - other end dealers not reported their sales turnover - Held that:- So far as the issue relating to reversal of input tax credit under Section 19(15) of the Act is concerned on the ground that the registration certificates of the dealers, from whom the petitioner purchased goods, have been cancelled, they are held to be not a ground to reversal of input tax credit of the purchasing dealer - Therefore, the proposal made by the respondent to reverse the input tax credit under Section 19(15) of the Act is not tenable. The other issue is with regard to reversal of input tax credit under Section 27(2) of the said Act stating that the other end dealers have not reported sales turnover. Even in this regard, there is no discussion as to how such an issue was taken up by the respondent for consideration and there is no material borne out even in the show cause notices. Therefore, the proposal to reverse the input tax credit under Section 27(2) of the said Act is also erroneous and not sustainable. With regard to levy of penalty, admittedly there is no allegation that there is any escapement of taxable turnover and when the books were accepted by the Authority, the question of levy of penalty does not arise. Decided in favor of asessee.
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