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2015 (3) TMI 1004 - HC - VAT and Sales TaxReversal of input tax credit - Shortage of material - Whether the input tax credit availed can be adjusted towards output in respect of goods which are not sold - Held that:- There is no dispute that the petitioner is a dealer. Therefore, Section 19(9)(ii) of the TNVAT Act will not be applicable to the case of the petitioner and it is Section 19(9)(i) of the TNVAT Act that will be applicable. We are not inclined to accept the technical plea of the petitioner that a wrong provision, namely, Section 19(9)(ii) of the TNVAT Act, has been quoted instead of Section 19(9)(i) of the TNVAT Act, as the facts clearly establish that it is a case which falls under Section 19(9)(i) of the TNVAT Act, which the Original Authority has failed to properly apply its mind. - A reading of the Section 19(9)(i) of the TNVAT Act makes it evident that no input tax credit shall be availed by a registered dealer for purchase of goods, if such goods are not sold because of any theft, loss or destruction, for any reason, including natural calamity, and if the dealer has already availed input tax credit against purchase of such goods, there shall be reversal of tax credit. This reversal of input tax credit has been done by the Original Authority based on the surprise inspection conducted by the Enforcement Wing on verification of the records and on coming to know that the goods on which input tax credit has been availed have not been sold for reason that there is a shortage, for whatever reason. Section 19(9)(i) of the TNVAT Act clearly provides that if the goods are not sold for any reason contained therein, there shall be reversal of tax credit. It is clear that the reversal of credit is only in respect of the goods not sold and, therefore, we find that the proceedings initiated by the Department, culminating in the order of the Tribunal, which is under challenge in these revisions, does not suffer from any infirmity. - No question of law arises - Decided against assessee.
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