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2016 (10) TMI 855 - HC - VAT and Sales TaxReversal of input tax credit - non production of documents under Section 19(13) of the TNVAT Act - Held that: - the second respondent erroneously reversed the input tax credit on the ground of lack of clarity in the documents produced. If the second respondent was satisfied with the very same documents while considering the issue of cross-verification, this Court is at a loss to understand as to how they would not be relevant for consideration while deciding the issue of reversal of credit. Even assuming that the registration certificates were cancelled retrospectively, that would not have any impact on the petitioner's right to claim input tax credit, as, admittedly, the petitioner had produced the original tax invoices and showed that the sale price includes VAT, that they discharged their liability and that payments were effected through bank transactions. That apart, the second respondent, while completing the assessment, stated that in the absence of clarity, the petitioner's contention is not acceptable. This finding lacks clarity - If the second respondent was of the view that there was lack of clarity, nothing prevented the second respondent from calling upon the dealer to appear in person and clarify the issues arising out of the documents, which they had submitted. In such circumstances, this Court is satisfied that the manner, in which, the impugned assessment orders have been passed, is not sustainable in law. Writ petitions disposed off - finding given by the second respondent on the issue relating to reversal of the input tax credit for non production of documents under Section 19(13) of the TNVAT Act, is set aside - decided partly in favor of petitioner.
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