Karnataka HC Allows ITC on Purchases Despite Selling Dealer’s VAT Default

Transworld Star Manjushree Vs Addl. Commissioner of Commercial Taxes (Karnataka High Court) The Karnataka High Court considered two appeals filed by a common assessee challenging the revisional authority’s order disallowing Input Tax Credit (ITC) claimed on purchases made from M/s Ashapura Metal Corporation and JAS Modular Systems during the Financial Year 2014-15. The appellant had purchased goods from the two selling dealers for Rs.1,58,76,115/- and Rs.2,40,03,328/-, respectively, on which VAT at 14.5% was charged. The appellant claimed ITC on these purchases. Following inspection of the b...