ITC Cannot Be Denied for Seller’s Non-Payment of VAT: Supreme Court

Commissioner Trade And Tax Delhi Vs Shanti Kiran India (P) Ltd. (Supreme Court of India) Supreme Court ruled that ITC cannot be denied to bona fide purchasers when sellers fail to deposit VAT. The decision upholds Delhi HC’s view protecting good-faith taxpayers. Reiterating the On Quest Merchandising precedent, SC held that ITC cannot be denied to genuine buyers absent evidence of collusion. The Supreme Court of India in Commissioner Trade and Tax Delhi vs Shanti Kiran India (P) Ltd. examined whether bona fide purchasing dealers are entitled to Input Tax Credit (ITC) under the Delhi Value Ad...