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Madras HC: Buyer Not Liable for Seller’s Tax Default; Purchase Tax Can’t Be Imposed under TNGST Act - (05 Nov 2025)

SALES TAX/VAT

Madras High Court held that under Section 7A of the Tamil Nadu General Sales Tax Act, 1959 (TNGST Act) purchase tax cannot be imposed on a buyer solely because the seller defaulted on tax payments. The court has clarified that Section 7A does not extend liability to the purchaser.

Tags : BUYER   TAX DEFAULT   TAMIL NADU GENERAL SALES TAX ACT  

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