Recent case law

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Lakshmi (Querist)
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28 October 2011 There is a provision in VAT, which says that unless the seller has deposited the VAT amount into Government Treasury, the purchaser is not entitled to input tax credit (set off)(Ex : Sec 48 of MVAT Act). I came 2 know from some source that,there was a recent case law (may be of Punjab & Haryana High Court)which contradicts the above provision. Can someone confirm whether there is any case law as such? Also if I can get d text of the case law ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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29 October 2011 Gheru Lal Bal Chand Vs. State of Haryana and another decision of P & H high court dated 23/09/2011.
Crux of the decision is as under.
The Hon’ble High Court has held that no liability can be fastened on the purchasing registered dealer on account of non-payment of tax by the selling registered dealer in the treasury unless it is fraudulent, or collusion or connivance with the registered selling dealer or its predecessors with the purchasing registered dealer is established.