Section 38(7) in Daman and Diu Value Added Tax Regulation, 2005
(7)Where -(a)a registered dealer (hereafter referred to as seller) has sold goods to another registered dealer (hereafter referred to as the buyer); and(b)the price charged for the goods expressly includes an amount of tax payable under this Regulation,the amount of tax may be refunded to the seller or may be applied by the seller under clause (b) of sub-section (3) and in that case the Commissioner may reassess the buyer to disallow him the amount of the corresponding tax credit claimed by such buyer, whether or not the seller refunds the amount to the buyer.
