Bona Fide Buyers Shielded from Seller’s VAT Default: Delhi HC

Solvochem Vs Commissioner of Trade & Taxes (Delhi High Court) In a significant ruling, the Delhi High Court addressed the contentious issue of Input Tax Credit (ITC) denials to purchasers due to the failure of selling dealers to remit Value Added Tax (VAT) to the government. The case, Solvochem Vs Commissioner of Trade & Taxes, scrutinized Section 9(2)(g) of the Delhi Value Added Tax (DVAT) Act, which allowed authorities to proceed against both buyers and sellers for unpaid tax. The Court’s decision primarily protects bona fide purchasers who have diligently followed tax procedur...