ITC could be availed in case purchaser had genuine invoices & seller failed to remit tax

S.P.Faizal Vs State of Kerala (Kerala High Court) Conclusion: Input tax credit could be legitimately availed by the purchasing dealer under the Kerala Value Added Tax Act, 2003, even in cases where the selling dealer failed to remit the tax due to the government, provided that the purchasing dealer had strictly complied with all statutory requirements including possession of genuine tax invoices as required under the statute. Held: In the instant case, the registered dealers under the provisions of the KVAT Act had filed writ petition challenging the denial of input tax credit on certain purch...