2021 (8) TMI 1427 - HC - VAT / Sales Tax

Appeal under Section 66(1) of the Karnataka Value Added Tax Act, 2003 - Input tax credit - denial on the ground that the selling dealer has not paid the tax - HELD THAT - The issue decided in the case of THE STATE OF KARNATAKA VERSUS SRI RAJESH JAIN 2017 (1) TMI 333 - KARNATAKA HIGH COURT where it was held that ' Once the purchaser dealer-assessee satisfactorily demonstrates that while purchasing goods, he has paid the amount of VAT to the selling dealer, the matter should end so far as his entitlement to the claim input tax credit' The impugned order is upheld - appeal allowed.

Summary

The Karnataka High Court allowed the appeal under Section 66(1) of the Karnataka Value Added Tax Act, 2003, against the order dated 27.05.2016 by the Additional Commissioner of Commercial Tax. The decision was based on a previous court order in the case of State of Karnataka Vs. Sri Rajesh Jain.