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2022 (1) TMI 560 - MADRAS HIGH COURTValidity of assessment order - input tax credit - failure to disclose the turnover in the return on the part of supplier - opportunity of personal hearing - case remitted back to the Assessing Officer to re-do the assessment once again after giving an opportunity of hearing to the petitioner - HELD THAT:- It is noticed that Principal Secretary / Commissioner of Commercial Taxes has now issued the Circular No.5/2021, dated 24.02.2021. Ultimately, the purpose of remanding the case back to the respondent was to pass appropriate orders after ascertaining whether the petitioner was indeed entitled to Input Tax Credit or whether the respondent was justified in demanding the tax. There cannot be any embargo on the respondent from passing orders even though the time specified had lapsed and merely because the respondent either failed to approach the Court order by explaining the delay. Be that as it may, the case of the petitioner has to be considered on merits. If the petitioner had availed input tax credit validly based on the invoice issued by the supplier, question of demanding tax from the petitioner will not arise if other conditions stipulated under the Rules were complied by the petitioner. Merely because the supplier failed to disclose the turnover in the return would not mean the input tax credit would be required to be recovered from the respondent. There are no merits in these Writ Petitions. However, since the Principal Secretary / Commissioner of Commercial Taxes has now issued the Circular No.5/2021, dated 24.02.2021 to specifically deal with the situation, the case has to be examined in the light of the said Circular. - The respondent is directed to pass a speaking order on merits within a period of the four weeks from the date of receipt of a copy of this order - Petition disposed off.
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