Dealers Cannot Claim Input Tax Credit For Purchases Linked To Exempt Sales Under UPVAT Act: Supreme Court

The Supreme Court of India recently delivered a significant judgment concerning the Uttar Pradesh Value Added Tax Act, 2008, specifically interpreting Section 7(c) and Section 13(7). The case involved Neha Enterprises, a registered dealer in Uttar Pradesh, who challenged the denial of input tax credit amounting to Rs. 6,42,260/- for the assessment year 2010-11, in respect of sales made to a manufacturer-exporter using Form-E. Sales Against Form-E and Claim of…