MVAT- ITC – No set off if tax not received into Government Treasury

Mahalaxmi Cotton Ginning Pressing and Oil Industries Vs. Vs. State of Maharashtra & Ors (Bombay High Court)

The Learned Advocate General appearing on behalf of the State has tendered a statement of the steps that would be pursued against defaulting selling dealers:

1) The Sales Tax Department will identify the Defaulters namely, registered selling dealers who have not paid the full amount of tax due in the Government Treasury either by not filling their returns at all or by filing returns but not paying the full tax due  or where returns are filed but sales to the concerned dealers are not shown (i.e. undisclosed sales).

2) Set off will be denied to dealers where at any stage in the chain of sales a tax invoice/certificate by a Defaulter is or has been relied on:

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