Madras HC Upheld Purchasing Dealer’s ITC Right Under Pre-2016 TNVAT Rules

Assistant Commissioner (CT) Vs Vinayaga Agencies (Madras High Court) The Madras High Court examined a case involving Vinayaga Agencies, which sought input tax credit (ITC) under the Tamil Nadu Value Added Tax (TNVAT) Act, 2006. The issue arose when the purchasing dealer, Vinayaga Agencies, was denied ITC for the tax paid on purchases made from a seller, Classic Enterprises, due to the latter’s failure to deposit the collected tax with the authorities. The case centered on the application of Section 19(1) of the TNVAT Act, which allows registered dealers to claim ITC if they can prove that th...