Delhi HC Protects Buyers from Seller VAT Default

Vinayak Trexim Vs Government of NCT of Delhi Through Secy. (Finance) & Ors (Delhi High Court) In a significant judgment, the Delhi High Court has addressed the denial of Input Tax Credit (ITC) to purchasing dealers when selling dealers fail to deposit Value Added Tax (VAT) with the government. The case, Vinayak Trexim Vs Government of NCT of Delhi Through Secy. (Finance) & Ors, scrutinized Section 9(2)(g) of the Delhi Value Added Tax (DVAT) Act, ultimately interpreting it to safeguard diligent purchasers. VAT, as defined by Section 2(1)(r) of the DVAT Act, functions as an indirect tax....