ITC to bona fide purchasers cannot be denied if selling dealer fails to deposit tax

National Plasto Moulding Vs State of Assam And 3 Ors. (Gauhati High Court) In the case of National Plasto Moulding Vs. State of Assam & Ors. at the Gauhati High Court, the court addressed the issue of whether purchasing dealers can be denied Input Tax Credit (ITC) if the selling dealer fails to deposit the collected tax. The court referenced the Delhi High Court’s decision in On Quest Merchandising India Private Limited Vs. Government of NCT of Delhi, which held that bona fide purchasing dealers should not be penalized for the selling dealer’s failure to remit tax. The Delhi Hi...