ITC on VAT cannot be denied to registered purchasers for seller’s failure to deposit tax with Govt: Supreme Court

This article covers a Supreme Court judgment which holds that a registered purchaser cannot be denied Input Tax Credit (ITC) merely because the seller failed to deposit the VAT (or tax) to the government. The Court’s ruling emphasizes the principle that a purchaser’s eligibility to claim credit should not be impaired by faults of the seller, unless statutory provision specifically disallows it. The article analyses the facts, statutory context under VAT/indirect tax law, arguments presented, and the court’s reasoning in preserving purchaser rights to credit. The decision has important implications for tax credit disputes and revenue recovery strategy.