The State Of Telangana vs. M/S. New Dhiraj Industries

TREVC/44/2022HC TelanganaGSTCNR HBHC01092216201829 August 2023Bench: P.SAM KOSHY,LAXMI NARAYANA ALISHETTY4 pages

For Petitioner: SRI K. RAJI REDDY, SC FOR CTFor Respondent: ne Appeared

AI SummaryDismissed

Held

The Court held that the mere fact that the seller has not paid tax does not automatically disentitle the subsequent purchaser from claiming input tax credit. This was based on various High Court decisions.

Facts

The State of Telangana challenged an order allowing a registered VAT dealer to avail input tax credit. The contention was that the dealer made purchases from a seller who had not paid taxes.

Key Issues

Whether a registered dealer can be denied input tax credit solely because the original seller defaulted in paying taxes.

Sections Cited

Section 34(1)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

t 3386 I IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUESDAY, THE TWENTY NINTH DAY OF AUGUST TWO THOUSAND AND TWENTYTHREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY TAX REVISION CASE NOi 440F 2022 TaxrevisionunderSection34(1)F/wRUle45aggrievedbyorderdated20-08- 2018inT'A.No.l62t2ollonthefileoftheTelanganaVATAppellateTribunal, Telangana, Hyderabad against the order dated 07 -07 -2O1O made in Appeal Nos.cv/29l2009 -|Ot cv/28t2oo9-10 on the file of the Deputy commissioner Punjagutta, HYderabad. Between: The State of Telangana, Rep. By lhe 9tq!e- .Representative befores The i;6";;; vAr Appeitite TribLjnal, D.No.5-4-404 to 408' Nampallv' Telangana' Hyderabad. ...PETITIONER/RESPONDENT AND M/s.NEWDHIRAJINDUSTRIES,lS-2-332tB,MUKHIYARGUNJ'HYDERABAD - 500 012, TIN NO. 28597456712. ...RESPONDENT/APPELLANT Counsel for the Petitioner: SRI K. RAJI REDDY, SC FOR CT Counsel for the Respondent: None Appeared

I t THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY TAX REV SION CASE No.44 ol 2022 O R D E R:(per Hon'ble Sri lustice P.SAM KOSHY)

Challenge in the

The judgment continues below.

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Reproduced from the public record of the Telangana High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.