18 February 2014
i am working in a pharma co. we purchased material & paid VAT as it was charged on bill But VAT no. on bill was fake & we also taken credit of the same But after then In scrutiny by Sale tax dept they said that the VAT paid against the fake VAT no. was not eligible for credit.I want to know that in such case when vendor cheated our co. sale tax department's rejection & penalty is correct & acceptable IF YES give me the reference rule & circular no. under Sale Tax