TNVAT: ITC Should Not Be Denied Due to Supplier’s Failure to Remit Tax

Tvl. Sahyadri Industries Ltd. Vs State of Tamil Nadu (Madras High Court) In a landmark judgment, the Madras High Court addressed a critical concern for taxpayers under the Goods and Services Tax (GST) regime, specifically relating to the conditions for availing Input Tax Credit (ITC). Drawing parallels from the erstwhile Tamil Nadu VAT (TNVAT) laws, the court’s decision sheds light on the practical challenges buyers face in ensuring sellers’ compliance with tax payments. The Case Overview: The crux of the case, “Tvl. Sahyadri Industries Ltd vs State of TN,” revolved ar...