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TMI Blog2016 (8) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... ssees only on the ground that the registration certificates of the selling dealers have been cancelled with retrospective effect, are set aside – writ petition allowed – decided in favor of appellant. - W.P.Nos.13125 to 13127 of 2014 and M.P.Nos.1 to 1 of 2014 - - - Dated:- 25-7-2016 - Mr. JUSTICE T.S.SIVAGNANAM For the Petitioner : Mr.S.Ravee Kumar For the Respondent : Mr.Manokaran Sundaram Additional Government Pleader JUDGEMENT COMMON ORDER Heard Mr.S.Ravee Kumar, learned counsel appearing for the petitioner and Mr.Manokaran Sundaram, learned Additional Government Pleader appearing for the respondents and with their consent, these writ petitions are taken up for disposal. 2.The petitioner is a register ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessees for deduction of the turnover of sales as above was declined and penalty was also imposed. The assessees failed before the appellate authority as well as the Maharashtra Sales Tax Tribunal. The High Court however reversed the decision and upheld the claims of the assessees, holding that disallowing the deductions claimed by the respondents would amount to tax on transactions which were otherwise not taxable. The Supreme Court, while dismissing the appeals filed by the Revenue, held as follows: 4.The High Court answered the question in the negative and in favour of the respondents. The High Court noted that the effect of disallowing the deductions claimed by the respondents was, in substance, to tax transactions which were othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court in the above case has clearly held that the retrospective cancellation of the registration certificate of the selling dealer can have no effect on the person who acted upon the strength of the registration certificate when it was in force. The Supreme Court further rejected the department's argument that duty is cast on the person who is dealing with the registered dealer to find out whether the registration certificate is valid or cancelled, by stating that such a plea would be against the provisions of the statute. 15.In the present case, it is not in dispute that the registration certificates of the selling dealers have been cancelled with retrospective effect and, therefore, to reverse the input tax credit on the plea tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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