2023 (4) TMI 1381 - HC - VAT / Sales Tax

Reversal of input tax credit pursuant to cancellation of selling / purchasing registration - HELD THAT - Reliance placed in the decision of Apex Court in the case of STATE OF MAHARASHTRA VERSUS SURESH TRADING COMPANY 1996 (2) TMI 451 - SUPREME COURT and a decision of Division Bench of this Court in the case of THE ASSISTANT COMMISSIONER (CT) VERSUS M/S. BHAIRAV TRADING COMPANY 2016 (9) TMI 1114 - MADRAS HIGH COURT where it was held that 'The High Court was right in answering the question in favour of the respondents. A purchasing dealer is entitled by law to rely upon the certificate of registration of the selling dealer and to act upon it. Whatever may be the effect of a retrospective cancellation upon the selling dealer, it can have no effect upon any person who has acted upon the strength of a registration certificate when the registration was current.' The impugned order of assessment is set aside and this writ petition is allowed.

Summary

The High Court of Madras, with Honourable Dr. Justice Anita Sumanth presiding, ruled in favor of the petitioner in a writ petition regarding the reversal of input tax credit due to the cancellation of registration. The decision was based on previous rulings by the Apex Court and a Division Bench of the Madras High Court. The impugned order of assessment was set aside, and the writ petition was allowed with no costs.