S. 9 (2) (g) of DVAT Act cannot be Invoke to Deny ITC to a Bonafide Purchaser: Gauhati HC

The Gauhati High Court ruled that Section 9(2)(g) of the Delhi Value Added Tax (DVAT) Act cannot be invoked to deny Input Tax Credit (ITC) to a genuine purchaser if the seller defaults. The court emphasized that a bona fide purchaser should not be penalized for the seller's non-compliance. This decision provides relief to businesses by upholding the principle that liability should not extend beyond the purchaser's control, ensuring fair treatment under the tax laws.