Mvat default by seller to deposit the collected tax...

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yuvak (Querist)
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15 March 2012 Hi Friends,

A Seller issues client a 'Tax Invoice' against the goods purchased and he makes the requisite payment to such Seller.

Now, after 3 years, client receives a notice from MVAT dept that the Seller has defaulted in his deposit of the levied VAT and therefore, the same will be recovered from my client. The MVAT office is also not accepting the supporting documents evidencing the transaction.

- How 'JUST' is this demand from the MVAT dept??

- Would this lead to the understanding that the 'DECLARATION' on the Tax Invoice has no value/ redundant?

- What remedy for the client??

Prakash Kochar

Prakash Kochar (Expert)
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18 March 2012 The Punjab & Haryana High court has delivered a landmark judgment namely Gheru Lal Bal Chand Vs. State of Haryana and another on 23/09/2011 disposing off writ petitions challenging the constitutional validity. Wherein common point was disallowance of input credit to purchaser, where seller is defaulter in payment of VAT on his turnover of sale. This judgement is applicable in all the states as the provision is similar.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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23 March 2012 Mr P Kochar,
Can you kindly quote the STC reporting reference ...MJK

Prakash Kochar

Prakash Kochar (Expert)
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24 March 2012 Mr. MJ Krishanamurty
The case No. is as under -
Writ Petition No. is 6573 of 2007, decision dated 23 Sept. 2011 decided by Punjab & Hariyana High Court, at Chandigarh in case of M/S. GHERULAL BAL CHAND Vs.State of Hariyana and other.

kochar.prakash@yahoo.com (09850350854)

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