Bona fide buyers cannot be denied ITC for seller’s failure to Pay VAT: Delhi HC

K.R. Anand Vs Government of NCT of Delhi & Ors (Delhi High Court) Delhi High Court has delivered a significant ruling in the case of K.R. Anand Vs Government of NCT of Delhi & Ors, addressing the denial of Input Tax Credit (ITC) to purchasing dealers when selling dealers fail to remit collected Value Added Tax (VAT) to the government. The Court meticulously examined Section 9(2)(g) of the Delhi Value Added Tax (DVAT) Act, ultimately interpreting it in a manner that protects diligent purchasers. VAT, as defined by Section 2(1)(r) of the DVAT Act, is an indirect tax. While the seller is ...