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2018 (10) TMI 205 - HC - VAT and Sales TaxPenalty - availing ITC - cancellation of seller's registration - It is claimed that the revisionist was not aware that the registration of the seller was cancelled - Held that:- The penalty proceeding which is initiated in the instant case against the revisionist, is totally illegal, arbitrary for the reason that in case if a registered dealer is effecting the purchases from a registered dealer whose registration is subsequently cancelled then in that event unless and until the purchaser is aware or is informed by the department it cannot be presumed that he was aware about the proceedings for cancellation of registration of a dealer/seller - The purchase of sand by the revisionist in the instant case, appears to be affected bona fidely as the revisionist was not aware about the fact that the seller who was affecting the sales is not a registered dealer or his registration is cancelled. The revisionist cannot be held guilty nor he is liable to pay the penalty - revision allowed.
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