Buyer’s ITC Safe if Seller Defaults on Tax: Delhi HC

Page ContentsMeenu Trading Co Vs Commissioner Of Trade & Taxes (Delhi High Court)Violation of Constitutional PrinciplesCourt Rejects Department’s ArgumentsReading Down the Law Meenu Trading Co Vs Commissioner Of Trade & Taxes (Delhi High Court) In a significant decision providing relief to countless businesses, the Delhi High Court in Meenu Trading Co vs. Commissioner of Trade & Taxes has ruled that a purchasing dealer who acts in good faith cannot be denied Input Tax Credit (ITC) merely because the selling dealer failed to deposit the collected tax with the government. The c...