Input tax credit requires independent, reasoned assessment; supplier tax default alone cannot mechanically determine purchaser liability.
Case-Laws
GST
Input tax credit claimed by a purchasing dealer cannot be determined mechanically solely because registered suppliers allegedly failed to deposit tax. The proper officer must independently assess the purchaser's liability under the applicable provision, consider documentary material supporting supplies, hear the parties, and issue a reasoned speaking order. Findings that the purchaser's material supported the supplies and that fraud was not established remain undisturbed, while the merits of the credit claim remain open for lawful determination.
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