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2020 (2) TMI 118 - HC - VAT and Sales TaxLevy of Purchase tax - Cotton Kappas - the contention of the Petitioner is that Purchase Tax under Section 12 (1) (a) will apply only on purchase from the registered dealer who fails to pay tax and not on purchase of goods from unregistered dealers - HELD THAT:- The arguments of the learned counsel for the Petitioner that no purchase tax is payable under Section 12 (1) of the Act appears to be incorrect in as much as the tax is payable on such purchase. Section 12 (1) is an exception to Section 3 of the Act. Further, a special dispensation has been provided to avail credit of such Tax as Input Tax Credit and to utilise the same under Section 12 (2) of the Act. Thus, the Petitioner was liable to pay tax. The demand for levy of purchase tax in the impugned order is upheld - The Petitioner may however proceed to avail credit of such Tax under the Provisions of Section 12 (2) of the TNVAT, 2006 and utilize the same under the Provisions of the Tamil Nadu Goods & Service Tax Act, 2017 if there are no other adjustment of Tax to be made under the TNVAT act, 2006 - petition disposed off.
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