A person bought gold jewelry worth about 12L 3 years back. The Shopkeeper did not issue proper vat invoice. Not VAT was paid or collected on this purchase.
Now commercial tax department is investigating the case. Person has admitted the fact that he purchased the gold from this Shopkeeper. But Shopkeeper has denied sale of gold. As the invoice is not proper, there is no evidence to prove which Shopkeeper sold it.
Will there be any liability/penalty on the purchaser?
From whom will Commercial tax department collect VAT now? Can the case be closed without any liability/penalty?
CAclubindia
