{"id":132,"date":"2025-10-22T06:32:31","date_gmt":"2025-10-22T06:32:31","guid":{"rendered":"https:\/\/blog.morleyandassociates.in\/?p=132"},"modified":"2025-10-22T06:32:31","modified_gmt":"2025-10-22T06:32:31","slug":"non-payment-of-output-tax-by-seller-does-not-bar-claiming-the-same-by-the-buyer","status":"publish","type":"post","link":"https:\/\/blog.morleyandassociates.in\/index.php\/2025\/10\/22\/non-payment-of-output-tax-by-seller-does-not-bar-claiming-the-same-by-the-buyer\/","title":{"rendered":"NON PAYMENT OF OUTPUT TAX BY SELLER DOES NOT BAR CLAIMING THE SAME BY THE BUYER."},"content":{"rendered":"\n<p>The Supreme Court  reaffirmed that bona fide purchasing dealers cannot be denied input tax credit merely because the selling dealer failed to deposit the tax, <\/p>\n\n\n\n<p>provided the purchaser acted in good faith and met the statutory conditions.<\/p>\n\n\n\n<p>It was decided by the Supreme court in the case of <strong>Commissioner of Trade &amp;\u202fTax, Delhi\u202fv.\u202fM\/s\u202fShanti\u202fKiran\u202fIndia\u202f(P)\u202fLtd.<\/strong> that  purchasing dealers cannot be denied input tax credit merely <\/p>\n\n\n\n<p>because the selling dealer failed to deposit the tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Relevant Statutory Provision<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section\u202f9(1) of DVAT Act gives input tax credit to a purchasing dealer under certain conditions. <a href=\"https:\/\/indiankanoon.org\/doc\/147180204\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">Indian Kanoon+1<\/a><\/li>\n\n\n\n<li>Section\u202f9(2) lists circumstances when input tax credit cannot be allowed, including after amendment clause (g): \u201cunless the tax paid by the purchasing dealer has actually been<\/li>\n\n\n\n<li> deposited by the selling dealer with the Government or has been lawfully adjusted\u2026\u201d <a href=\"https:\/\/indiankanoon.org\/doc\/147180204\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noreferrer noopener\">Indian Kanoon+1<\/a><\/li>\n\n\n\n<li>Importantly: Clause (g) was introduced by amendment effective 1\u20114\u20112010 \u2014 i.e., it did <em>not<\/em> apply to the period during which <\/li>\n\n\n\n<li>the disputed transactions took place (2007\u201108). <\/li>\n<\/ul>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Supreme Court reaffirmed that bona fide purchasing dealers cannot be denied input tax credit merely because the selling dealer failed to deposit the tax, provided the purchaser acted&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-132","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/blog.morleyandassociates.in\/index.php\/wp-json\/wp\/v2\/posts\/132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.morleyandassociates.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.morleyandassociates.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.morleyandassociates.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.morleyandassociates.in\/index.php\/wp-json\/wp\/v2\/comments?post=132"}],"version-history":[{"count":1,"href":"https:\/\/blog.morleyandassociates.in\/index.php\/wp-json\/wp\/v2\/posts\/132\/revisions"}],"predecessor-version":[{"id":133,"href":"https:\/\/blog.morleyandassociates.in\/index.php\/wp-json\/wp\/v2\/posts\/132\/revisions\/133"}],"wp:attachment":[{"href":"https:\/\/blog.morleyandassociates.in\/index.php\/wp-json\/wp\/v2\/media?parent=132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.morleyandassociates.in\/index.php\/wp-json\/wp\/v2\/categories?post=132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.morleyandassociates.in\/index.php\/wp-json\/wp\/v2\/tags?post=132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}