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2015 (1) TMI 590 - MADRAS HIGH COURTMaintainability of the writ petition – Held that:- Revenue contended that the petitioner has got an effective alternative remedy of appeal and without exhausting the same, the petitioner cannot maintain the writ petition - it is the settled legal principle that, in all cases, where an alternate remedy is provided for, would not automatically oust the jurisdiction of the Court, under Article 226 of the Constitution of India - Each case has to be decided on facts and there can be no straight jacket formula - the notice, dated 20.07.2012, was issued solely on the premise that the petitioners' vendors either have not paid taxes or they are non-assessess or unregistered dealers - it is evidently clear that the respondent failed to apply his mind to the submissions made by the petitioner and the documents produced - the order, apart from being a non-speaking order, is vitiated on account of non-application of mind and an order devoid of reasons - the petitioner need not be compelled to avail the alternate remedy under the Act - the preliminary objection raised by the Additional Government Pleader with regard to maintainability is rejected. Reversal of Input Tax Credit u/s 19(13) of the VAT Act - Defects noted by Revenue on verification of returns filed – Held that:- In Althaf Shoes (P) Ltd. Versus Assistant Commissioner (CT), Valluvarkottam Assessment Circle, Chennai-6 [2011 (10) TMI 567 - Madras High Court] it has been held that the circular issued by the Commissioner clearly states that so long as the vendor is found to be a registered dealer on the files of the Revenue, the claim of the assessee for refund could not be rejected nor delayed - so long as the purchasing dealer has complied with the requirements as given under Rule 10(2), the claim of the purchasing dealer cannot, by any length of reasoning, be denied by the Revenue – thus, the ITC availed by the petitioner could not have been proposed to be reversed or reversed on the grounds stated by the respondent, i.e., the selling dealer has not filed returns or not paid taxes or they were unregistered dealers or their registrations were retrospectively cancelled - the exercise of the jurisdiction by the respondent itself is ex-facie arbitrary and the proceedings are not only vitiated by serious procedural infirmities, but are arbitrary and unreasonable and without jurisdiction and held to be illegal – thus, the order is set aside – Decided in favour of petitioner.
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