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2021 (9) TMI 84 - HC - VAT and Sales TaxReversal of Input Tax Credit - inputs are purchased inside the State of Tamil Nadu - stock transfer for job work and conversion to a factory of the petitioners located outside the State of Tamil Nadu, but brought back to Tamil Nadu for sale on payment of VAT - constitutional validity of Section 19 (2) (ii) of the VAT Act 2006 - HELD THAT:- The issues raised in the present writ petition are no more resintegra as the Hon'ble Division Bench of this Court struck down Section 19 (2) (ii) of the VAT Act 2006, in the case of Patina Gold Ornaments Pvt.Ltd., vs. Assistant Commissioner (CT), Park Road Circle, Erode and Another [2017 (10) TMI 185 - MADRAS HIGH COURT] where it was held that the respondents cannot retain ITC on goods purchased within the State, by invoking provision of section 19(4) of the 2006 Act to the extent of rate of tax provided therein, ie., three per cent (which was the rate provided therein at the relevant point of time), as that would make the relief inefficacious since the subject goods, i.e., bullion / wornout jewellery on which tax credit was sought by the writ petitioner was imposed at the rate of one per cent. The impugned order of Assessment is set aside and the respondents are directed to adjudicate the issues by affording opportunity to the writ petitioner and pass fresh Assessment Order by following the procedures as contemplated - Petition allowed.
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