ITC Benefits cannot be denied to purchaser merely for subsequent de-registration of selling dealers

M/s Onyx Designs Vs The Assistant Commissioner of Commercial Taxes (Karnataka High Court) Conclusion: In absence of any other allegations made against the purchasing dealer in the assessment orders, merely for the reason that selling dealers had not deposited the collected tax amount or some of the selling dealers had been subsequently deregistered could not be a ground to deny the input tax credit. Thus, re-assessment orders and the demand notices were set aside. Held: Assessee-dealer of bags and gift items had availed the credit of input tax paid on the purchases made from the dealers. Afte...