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2018 (12) TMI 1895 - MADRAS HIGH COURTInput Tax Credit - discounts given in the form of issuance of a credit note but Tax was paid only on the original purchase price - grievance of the Assessing Officer appears to be that the writ petitioner's purchase turnover being lower, he cannot claim ITC on the original purchase price - HELD THAT:- The stand of respondent / Assessing Officer cannot be accepted. It clearly runs counter to the statutory scheme set out in TNVAT Rules, 2006. Section 2(41) of the Act defines what is “turnover”. The Explanation (II) (ii) of Section 2 (41) states that any discount on the price allowed in respect of any sale shall not be included in the turnover. In the case on hand, it is beyond dispute that the tax already paid by the selling dealer has not at all been disturbed. Therefore, the very approach of the second respondent is contrary to the statute. Petition allowed - decided in favor of petitioner.
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