Buyer can’t be held Liable for Sellers default in Remittance of Collected tax
Recently, another landmark judgement has been delivered wherein it is held that buyer can’t be held Liable for Sellers default in Remittance of Collected tax.
Having found that the sale to petitioner is liable to tax in the hands of the petitioner’s vendor, levy of purchase tax only on the premise that petitioner’s vendor had not remitted tax cannot be sustained.
If petitioner’s vendor fails to remit appropriate tax, Revenue ought to proceed against the petitioner’s vendor, instead any levy of purchase tax by the respondent would be bad for want of jurisdiction and cannot be sustained.
The copy of the order is as under:
