GST Case Law Update: National Plasto Moulding Vs State of Assam (Guahati High Court)
Background : The petitioners challenged the validity of certain sections of the Assam and Central Goods and Services Tax Acts. The controversy was already decided by the Delhi High Court in On Quest Merchandising India Private Limited -Vs- Government of NCT of Delhi & Ors. , which ruled that a purchasing dealer cannot be punished for the failure of the selling dealer to deposit tax. The Supreme Court dismissed the SLP against the Delhi High Court's decision. Gauhati High Court's Decision : The Gauhati High Court found the controversy in the present case to be covered by the Delhi High Court decision. The court referenced specific sections of the Delhi High Court's judgment: Section 39: The Delhi High Court recognized the need to protect bona fide purchasing dealers from being punished for the selling dealer's failure to deposit tax. Section 41: The court noted that requiring purchasing dealers to anticipate the selling dealer's non-compliance is unreasonable....