Arise India Limited & Others v. Commissioner of Trade & Taxes, Delhi & Others

The case of Arise India Limited & Others v. Commissioner of Trade & Taxes, Delhi & Others is a landmark judgment of the Delhi High Court, subsequently affirmed by the Supreme Court of India through dismissal of the Revenue’s Special Leave Petition (SLP). The decision is one of the most significant authorities protecting bona fide purchasing dealers from denial of Input Tax Credit (ITC) on account of defaults committed by suppliers.

The dispute arose under Section 9(2)(g) of the Delhi Value Added Tax Act, 2004 (DVAT Act). The provision stipulated that a purchasing dealer would be entitled to ITC only if the selling dealer had actually deposited the tax collected into the Government treasury.