SC Says when Seller defaults Buyer should not be Penalised

The Supreme Court has affirmed the Delhi High Court that a bona fide registered purchaser is entitled to Input Tax Credit (ITC) under the Delhi VAT regime where: (i) the supplier was registered on the date of supply; (ii) the purchaser has valid tax invoices; and (iii) there is no material of collusion or sham. Where the seller later fails to deposit tax collected, the correct revenue remedy is recovery proceedings against that seller — not denial of ITC to an innocent buyer. Please do read the snaphot by J the App by JustIDT