TMI Blog2013 (8) TMI 532X X X X Extracts X X X X X X X X Extracts X X X X ..... ame for availment of Input Tax Credit before the end of the financial year or ninety days from the date of purchase, whichever is later - Section 19(11) being part of Section 19, to avail Input Tax Credit, the conditions thereon were to be strictly complied with. The intention of the Legislature was to restrict the benefit of "Input Tax Credit" within a particular time-frame - Consequence of non-compliance was very much available in Section 19(11) dealing with non-entitlement of "Input Tax Credit” - challenging the assessment order/show cause notices denying the credit taken in the revised returns involving Section 19(11) of TN VAT Act were not maintainable. Section 19(11) – Directory of mandatory - Whether Section 19(11) was only directory and not mandatory – Held that:- Value Added Tax structure had the ultimate goal of augmenting the revenue by making the procedure simple and more transparent. Legislature in its wisdom mandated time frame for availment of Input Tax Credit accrued on purchases before the end of the financial year or ninety days from the date of purchase whichever is later. Section 19(11), being mandatory, the time-frame stipulated for Input Tax Credit is to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel Mr. N. Inbarajan, Mrs. R. Hemalatha, Mr. K. Vaitheeswaran, Mr. P. Rajkumar, M/s. Lakshmi Sriram, Mr. P. V. Ravi Kumar, M/s. Aparna Nanda kumar, Mr. S. Prabhakaran, M/s. Hema Muralikrishnan, Mr. K. Soundararajan, Mr. S. Ramanathan, Mr. R. Senniappan, Mr. B. Raveendran, Mr.P. R. Kumar, Mr. L. Muralikrishnan, Mr. S. P. Radhakrishnan, Mr. A. Chandrasekaran, Mr. T. Pramodkumar Chopda, Mr. P. Srinivas, Mr. A. Thiagarajan, Mr. Bakthasiromani, Mr. A. Ravichandran, Mr. S. P. Asokan, Mr. P. V. Sudakar, Mr. M. Venkadeshan, Mr. R. Mahadevan, Mr. V. Sundareeswaran, M/s. K. Venkatasubramanian, Mr. D. Vijayakumar, M/s. Maha Associates, Mr. S. N. Kirubanandam, Mr. S. Sivanandam, Mr. M. Desingu, M/s. Sarvabhauman, Mr. A. P. Srinivas For the Respondents : Mr. A. L. Somayaji, Advocate General, Mr. V. Haribabu, AGP (Taxes) Mr. Cibi Vishnu, AGP(Taxes), Mr. Manohara Sundaram, Govt. Advocate (Taxes) Mr. Kanmani Annamalai, Govt. Advocate (Taxes) Mr. J. Adithya Reddy, Govt. Advocate (Taxes) and Mr.A.R.Jayaprathap, Govt. Advocate (Taxes) ORDER R. Banumathi, J. And T. S. Sivagnanam, JJ. Challenge in these writ petitions is the vires of Section 19(11) of Tamil Nadu Value Added Tax Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me limit for assessment, Section 19(11) fixes time limit in an arbitrary manner. Contending that Section 19(11) is unworkable and is inconsistent with the general scheme of the Act, petitioners have challenged the vires of Section 19(11) of TN VAT Act. 5. Respondents resisted the writ petitions contending that there is nothing unreasonable or arbitrary in prescribing the time limit for claiming Input Tax Credit in respect of any transaction of taxable purchase. Since intention of the Legislature is to avoid misuse and tax evasion, the time limit prescribed under Section 19(11) of TN VAT Act for claiming Input Tax Credit cannot be termed as unreasonable restrictions. If indefinite period is allowed, it is likely to be misused apart from the fact that after the lapse of long time, the related transactions cannot be verified. 6. We have heard Mr.C.Natarajan, learned Senior counsel, Mrs.R.Hemalatha, Mr.S.P.Asokan, Mr.Pramodkumar Chopda, Mr.V.Sundareswaran, Krishna Srinivas and Mr.P.Rajkumar, learned counsels appearing for the petitioners and the other learned counsels who adopted the arguments of the learned Senior Counsel. 7. Submissions:- The learned Senior Counsel Mr.C.N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he vendor and corresponding input credit stood ascertained at the time of filing the return. Reference was made to Blacks Law Dictionary and Advanced Law Lexicon to state that failure and default are synonymous expressions. Further, Section 19(11) does not apply in situations where there is no failure to seek credit, because the additional tax liability was incurred by the vendor, either due to tax rate or price is assessed or reassessed or revised under Sections 22(4), 27(1)(b), 29 or due to revision of assessment under Section 53 etc. Equally, it does not apply, where liability of vendor is enhanced or modified in the process of appeal such as Section 51 or Section 59. Section 19(11) cannot be read to provide a limitation as no law of limitation can start running before accrual of right, as limitation operates to enforce existing right and not where, there is no right. 10. It is further submitted that Section 19(11) is directory and not mandatory. The question whether shall is mandatory or directory depends on the language, intention of legislature and scheme and design and whether consequences spelt. Reliance was placed on the decision of the Hon'ble Supreme Court in Stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ides a factor to be considered at the time of computation of liability that has already arisen under Section 3(2). That the right under Section 3(3) is a concession and it is strictly to be governed by the manner prescribed under the statute which is Section 19 and the claim for Input Tax Credit is neither a fundamental right nor a common law right. It was submitted that the usage of the word in the manner prescribed in Section 3(3) has to be read to mean the prescription in Section 19 including the time limit in Section 19(11) and the Input Tax Credit claim is neither absolute nor indefeasible. 13. The learned Advocate General made meticulous submission that the right to claim Input Tax Credit being a concession is available only in situation contemplated under the statute and if the right is not available in a given situation, it only means that the legislature did not intend to grant the right to claim Input Tax Credit in such situations. It is further submitted that all situations as claimed by the petitioners are not covered by Section 19(11), are situation where the tax liability of the vendor increases due to events like price variation, revision of assessment, reassessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respective State Governments. Initially the States Governments were reluctant to introduce VAT in their respective States. After persuasion by Central Government, all States ultimately agreed to introduce the State Level Sales Tax - VAT at the Conference of Chief Ministers of all States at Delhi in November, 1999. A High Power Committee (termed as Empowered Committee ) consisting of senior representatives of all 29 States was constituted under Chairmanship of Dr.Asim Dasgupta. Introduction of VAT was delayed on several occasions. Finally, it was announced that all States agreed to introduce VAT with effect from 1.4.2005. A White Paper was released by the Empowered Committee on 17.1.2005 and the said White Paper is a Policy Document indicating the basic policies of the State Sales Tax VAT. The White Paper circulated by the Empowered Committee of State Finance Ministers furnished the following rationale for the introduction of VAT: In the existing sales tax structure, there are problems of double taxation of commodities and multiplicity of taxes, resulting in a cascading tax burden. For instance, in the exiting structure, before a commodity is produced, inputs are first taxed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... every registered dealer having turnover of sales above the amounts specified to issue a tax invoice serially numbered containing the prescribed particulars. Failure to comply with the mandatory requirements attracts penalty. The basic simplification of VAT is that VAT liability will be self assessed by the dealer themselves in terms of submissions on returns upon setting of the credit limit. This has done away with the requirement of compulsory assessment as in the sales tax regime. The correctness of self assessment is subject to check through the departmental audit. Therefore, the net effect of the VAT system is to rationalise the tax burden and bring down in general the price level and to bring in simplicity and transparency in the tax structure thereby improving the tax compliance and eventually to ensure revenue growth. The above in broad terms is the concept of VAT. 18. There is distinction between the scheme of tax on sale of goods both under the VAT regime and under the Sales Tax Act existing prior to that. Under the Sales Tax Act except a few items, all other goods were taxable at the point of first sale in the State. Therefore tax was levied and collected only from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods . 21. Section 19 deals with Input Tax Credit and the conditions/requirements to be complied with for claiming Input Tax Credit. Section 20 deals with assessment of tax . Section 21 deals with filing of returns in the prescribed form . Section 22 deals with deemed assessment and procedure to be followed by the Assessing Authority . Section 27 deals with assessment of escaped turnover and wrong availment of Input Tax Credit . Section 53 deals with special powers of Joint Commissioner , who may on his own motion call for and examine any assessment or order, if such assessment or order or proceeding recorded prejudicial to the interest of the revenue. 22. Section 3 of TN VAT Act deals with levy of tax on sales of goods . The manner and extent to which a registered dealer who has paid tax as per the charging provision Section 3(2) would be entitled to credit has been spelt out in sub-section (3) of Section 3. Section 3 reads as under:- 3. Levy of taxes on sales of goods: (1) (a) Every dealer, other than a casual trader or agent of a non-resident dealer, whose total turnover for a year is not less than rupees five lakhs and every casual trader or agent of a nonresident d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls with the mechanism for availing Input Tax Credit. 25. Section 19 of TN VAT Act stipulates conditions for claiming Input Tax Credit. Section 19 reads as under:- Section 19. Input tax credit.- (1)There shall be input tax credit of the amount of tax paid or payable under this Act, by the registered dealer to the seller on his purchases of taxable goods specified in the First Schedule : Provided that the registered dealer, who claims input tax credit, shall establish that the tax due on such purchases has been paid by him in the manner prescribed. (2)Input tax credit shall be allowed for the purchase of goods made within the State from a registered dealer and which are for the purpose of (i)re-sale by him within the State; or (ii)use as input in manufacturing or processing of goods in the State; or (iii)use as containers, labels and other materials for packing of goods in the State; or (iv)use as capital goods in the manufacture of taxable goods. (v)sale in the course of inter-State trade or commerce falling under sub-section (1) of section 8 of the Central Sales Tax Act, 1956. (vi)Agency transactions by the principal within the State in the manner a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y registered dealer has sold goods at a price lesser than the price of the goods purchased by him, the amount of the input tax credit over and above the output tax of those goods shall be reversed. The entire design of VAT is Input Tax Credit which is crucially based on documentation of Tax Invoice. The tax sufferance proved by original tax invoice, production of original invoice, filing of Returns as per Rule 7 of Tamil Nadu Value Added Tax Rules, maintenance of true, correct and complete accounts, claiming Input Tax Credit within the time stipulated are the essence of the claim for availing Input Tax Credit. 26. Sub-section (1) of Section 19 of TN VAT Act, 2006 provides for availment of Input Tax Credit in any month accrued on purchases made against the output tax due on sale by a registered dealer. Proviso to sub-section (1) of Section 19 stipulates that the registered dealer, who claims Input Tax Credit, shall establish that the tax due on such purchases has been paid by him in the manner prescribed. Sub-section (2) of Section 19 enumerates the transactions for which Input Tax Credit shall be allowed. Section 19(3)(a) and (4) provide for allowing Input Tax Credit. As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on and sub-section (3) of Section 3, which provides for availing Input Tax Credit is an integral part of sub-section (2) of Section 3. Learned Senior Counsel submitted that while tax payable under sub-section (2) of Section 3 by a dealer on every sale made by him is mandatory, the dealer as of right is entitled to claim Input Tax Credit and therefore, the Input Tax Credit provided under sub-section (3) of Section 3 is not a concession, but is an indefeasible right. Learned Senior Counsel further contended that the substantive right of claiming Input Tax Credit under sub-section (3) of Section 3 of the Act cannot be curtailed by imposing restrictions like Section 19(11) of TN VAT Act. 30. On a careful and closer reading of the provision, the position appears otherwise. Though in sub-section (3) the expression used is shall as regards the reduction in the tax payable to the extent of tax paid on purchase of goods inside the State such reduction is not automatic, but is in the manner prescribed under the Act. If such is the case, the only plausible interpretation that could be given is that in the event a registered dealer seeks for reduction of the tax payable by taking umbrage un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessing authority to deny ITC when it is found that fraud has been committed. 34. Thus from out of all taxable transactions stipulated under sub-section (2) of Section 3, certain transactions are carved out to give benefit of Input Tax Credit. Thus, having examined the manner and entitlement of ITC as per Section 19 of the Act, it can hardly be said that the right to claim ITC is a vested right or an indefeasible right, but it is a benefit conferred under the Act in certain contingencies and subject to conditions, to be extended in the manner prescribed. The Input Tax Credit given under sub-section (3) of Section 3 is really a benefit given in respect of certain taxable transactions for which tax paid under sub-section (2) of Section 3 to the extent of tax paid on purchase of goods inside the State. Therefore, it cannot be contended that sub-section (3) of Section 3 is an integral part of sub-section (2) of Section 3 conferring absolute and indefeasible right on the registered dealer. Input Tax Credit provided under sub-section (3) of Section 3 is really a benefit or indulgence. While so, it is open to the State Legislature to provide for conditions and restrictions while e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State branches and agents and sold there, no sales tax can be or is levied by the State of Maharashtra. The State of Maharashtra gets nothing in respect of such sales effected outside the State. In respect of such sales, the rule-making authority could well have denied the benefit of set-off. But it chose to be generous and has extended the said benefit to such out-State sales as well, subject, however to deduction of one per cent of the sale price of such goods sent out of the State and sold there. We fail to understand how a valid grievance can be made in respect of such deduction when the very extension of the benefit of set-off is itself a boon or a concession. It was open to the rule-making authority to provide for a small abridgement or curtailment while extending a concession. ....... (underlining added) 36. On this issue, useful reference may be made to the recent decision of the Division Bench of Bombay High Court in M/s.Mahalaxmi Cotton Ginning Pressing and Oil Industries vs. the State of Maharastra and Ors., [MANU/MH/0620/2012]. The challenge before the High Court of Bombay was to the constitutional validity of Section 48 (5) of the Maharastra Value Added Tax Act, 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which they are otherwise liable to pay under TN VAT Act. While so extending the concession, it is open to the Legislature to impose conditions. Section 19(11) is one such condition imposed making it mandatory for the registered dealer to claim Input Tax Credit before the end of the financial year or before ninety days from the date of purchase, whichever is later. The entitlement to claim Input Tax Credit is created by TN VAT Act and the terms on which Input Tax Credit can be claimed must be strictly observed. 40. The expression in the manner prescribed has been used in several places in Section 19 i.e. Section 19(2)(vi), 19(3)(b), 19(4), 19(10)(a) and 19(10)(b), 19(8) and in Section 3(3). That apart in several places in TN VAT Act, the expression in the manner prescribed / in the manner as may be prescribed has been used in Sections 2(36) (38), 3(3), 5(1), 6A(2), 8(2), 14(1), 14(2), 18(2), 20, 21, 22(2), 22(4), 22(6)(a), 31, 32, 33(1), 33(3), 39, 39(8), 48A(1), 50, 51(4), 52(4), 54(4), 58(6), 59(5), 59(6)(b), 60(7)(b), 62(3), 64, 66, 67(3)(5), 67(10), 68, 69(b), 71(3)(d), 87A, 88(6)(a). The usage of the expression in the manner prescribed occurring in Section 3(3) shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is mandatory and that dealer has to strictly follow the procedure . Referring to the decisions in (1965) 3 SCR 626 : AIR 1966 SC 12 [Kedarnath Jute Mfg. v. C.T.O.] and (1997) 10 SCC 486 [Delhi Automobiles (P) Ltd. v. C.S.T.], it was held that to claim concessional rate of tax, provisions have to be strictly construed and that unless there is strict compliance with the provisions of the Statute, the registered dealer is not entitled to the concessional rate of tax. 43. Section 19(11) TN VAT Act was enacted because Legislature consciously wanted to set up a time frame for availment of Input Tax Credit before the end of the financial year or ninety days from the date of purchase, whichever is later. Section 19(11) being part of Section 19, to avail Input Tax Credit, the conditions thereon are to be strictly complied with. 44. Re.contention : Section 19(11) is only procedural and it cannot whittle down substantive right:- Learned Senior Counsel for petitioners contended that Section 3 is the Charging Section and Section 3(3) provides for Input Tax Credit and Section 19 is the machinery for effectuating the Input Tax Credit and the substantive right under Section 3(3) for avai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g month to the Assessing Authority. In Form-I, the dealer is to furnish the correct and complete details of (i) Input Tax Credit; (ii) Tax payable; (iii) Capital goods; (iv) Ouput items and other relevant details indicated in Form-I. If there is any omission or error therein, other than as a result of inspection or audit or receipt of any other information or evidence by the Assessing Authority, Rule 7(9) enables the registered dealer to file a revised return rectifying the omission or error within the period of six months from the last day of the relevant period to which the return relates. Only in case of any of failure or omission to claim Input Tax Credit, in Section 19(11), a time frame has been fixed to claim Input Tax Credit before the end of the financial year or ninety days from the date of purchase, whichever is later. 47. Re.contention : Section 19(11) is a machinery provision to be construed liberally:- Onbehalf of petitioners, it was contended that Section 19 is a machinery provision and it has to be construed more liberally and must be reasonably applied. To support such contention, reliance was placed on the decision of the Hon'ble Supreme Court in Murarila ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder under Section 22(6)(a) or under Section 25(1) or under Section 27, Section 19(11) would operate as an embargo to the registered dealer in claiming Input Tax Credit which would prejudicial to the registered dealer. Learned counsel further submitted that in respect of Inter-State sale, the assessee is entitled to 3% levy (now reduced to 2%) on production of C Form. Learned counsel further submitted that at the time of assessment if no C Form is produced, high rate of tax has to be paid and Input Tax Credit claim will be rejected and if C Form is received later, because of the embargo under Section 19(11), the assessee cannot claim Input Tax Credit and such Input Tax Credit will be rejected. Learned counsel submitted that Section 19(11) operates as an embargo in claiming Input Tax Credit and Section 19(11) is incompatible with the scheme of the Act. 51. Mr.S.P.Asokan, learned counsel for petitioners submitted that Rule 7(9) permits rectification of errors in the returns and filing of revised returns within the period of six months from the last date of relevant period to which the return relates and Section 19(11) provides other limitation for claiming Input Tax Credit. While so, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r is later. Section 19(11) not only effectuates the provision of the Act, but is also more in the nature of the beneficial to registered dealer. 54. We have held that the benefit of credit under the Act is in the nature of a concession given which could be availed only in the manner and in the circumstances mentioned in Section 19. Therefore, the Legislature has given one more benefit which also is in the nature of a concession in respect of registered dealer who failed to claim tax credit in any month and they have been given time to make the claim till the end of the financial year or before 90 days from the date of purchase, whichever is later. Therefore, the word shall used in Section 19(11) of the VAT Act is held to be mandatory and not directory. 55. Every dealer under the Act shall file return in the prescribed form within the prescribed period in the prescribed manner along with proof of payment of tax. Section 22 deals with procedure to be followed by the Assessing Authority while making the assessment. In terms of Section 22(4), when the return filed is incomplete or incorrect, after making enquiry, the Assessing Authority shall assess the dealer to the best of its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment under Section 22, 24, 27, 28 or 29 of the Act, the Assessing Authority is to follow the procedure laid down in Rule 8(6) by serving appropriate notice. Therefore, the contention raised by the petitioners that in the event of the assessment or re-assessment under Section 22, 24, 27,28 or 29, Section 19(11) acts as an embargo is liable to be rejected. Section 19(11) is neither inconsistent nor opposed to the other provisions of the Act nor derogatory to the scheme of the VAT Act. 59. On behalf of the petitioners, it was submitted that when re-assessment is made either under Sections 22, 24, 27, 28 or 29 of the Act, there may arise genuine hardships in claiming Input tax credit and in such cases Section 19(11) would be a stumbling block in claiming Input tax credit. For the sake of argument, assuming that there may be any genuine hardships for the dealers, it is for the Legislature to intervene and make suitable amendment and not for this Court to do so. 60. In India Agencies case [(2005) 2 SCC 129] the Hon'ble Supreme Court held as follows:- 26. We are of the opinion that a liberal construction was not justified having regard to the scheme of the Act and the Rules i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 54 of List II, also authorises an enactment, which prevents the tax evasion or taking excess credit. Regulating the claim of Input Tax Credit is within the powers of legislative competence. The Legislature consciously enacted Section 19(11) of TN VAT Act with avowed object of incorporating the time-frame for availing the Input Tax credit. Prescribing such time frame for availing input tax credit is well within the legislative competence of the State. 64. The Hon'ble Constitution Bench of the Supreme Court in R.K.Garg vs. Union of India [(1981) 4 SCC 675], held that there is always a presumption in favour of the constitutionality of a statute and the burden is upon him who attacks it to show that there has been a clear transgression of the constitutional principles. Laws relating to economic activities should be viewed with greater attitude than laws touching civil rights such as freedom of speech, religion etc. The legislature should be allowed some play in the joints and there is no straitjacket formula particularly in case of legislation dealing with economic matters and having regard to the nature of the problem required to be dealt with, greater play in the joins has t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the outcome of the proceeding, would be invalid. On the other hand, it is not always correct to say that where the word may has been used, the statute is only permissive or directory in the sense that non-compliance with those provisions will not render the proceeding invalid. In that connection, the following quotation from Crawford on Statutory Construction - Art. 261 at p.516 is pertinent: The question as to whether a Statute is mandatory or directory depends upon the intent of the Legislature and not upon the language in which the intent is closed and the meaning and intention of the Legislature must govern, and theses are to be ascertained, not only from the phraseology of the provision, but also by considering its nature, its design and the consequence which would follow from construing it the one way or the other. ....... 68. We may usefully refer to the following passage in Craies on Statute Law , 5th Edition, p.242 which reads as under :- No universal rule can be laid down as to whether mandatory enactments shall be considered directory only or obligatory with an implied nullification for disobedience. It is the duty of courts of justice to try to get at the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the above decision is of no assistance to the petitioners in the present cases. Like wise, in all other decisions, the Hon'ble Supreme Court has taken a view that it is directory only in the light of those enactments which were under consideration. 72. Applying the principles of interpretation, the test to ascertain whether the word shall used in Section 19(11) has to be examined upon the TNVAT Act and we should not go by the phraseology of the provision, but should consider the nature, its design and consequence which would follow from it. Section 19(11) specifically uses the word shall as regards compliance with the time-frame for claiming Input Tax Credit accumulated on purchases either before or end of the financial year or before ninety days after the purchase whichever is later. In our considered view in order to verify the entries and to prevent any tax avoidance or evasion, time frame is stipulated in Section 19(11) of TN VAT Act to claim Input Tax Credit. The use of the word shall is ordinarily indicative of the mandatory nature of the provision. 73. Learned counsel for petitioners then contended that as per Section 18(3) of the Act, where a dealer has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p a time frame for availment of Input Tax Credit accrued on purchases before the end of the financial year or ninety days from the date of purchase whichever is later. 78. On behalf of the petitioners, it was submitted that the impugned provision does not take into account the commercial realities as in the cases of Modvat or Cenvat Credit Rules with the in-built flexibility and therefore, Section 19(11) is to be held as directory and not mandatory. As discussed earlier, the Legislature consciously prescribed a time frame for availment of Input tax credit accrued before the end of the financial year or 90 days from the date of purchase, whichever is later. Section 19 is a pre-condition for availment of input tax credit . When Section 19(11) is a pre-condition for availing Input Tax Credit, it is to be strictly complied with and the petitioners cannot contend that there ought to have been flexibility in the time frame for availing Input tax credit . 79. Learned Advocate General submitted that the time frame for availment of Input Tax Credit is reasonable and the same has been enacted with a view to verify the details furnished by the registered dealers before the end of the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f availments of Input Tax Credit. 83. Value Added Tax structure has the ultimate goal of augmenting the revenue by making the procedure simple and more transparent. Legislature in its wisdom mandated time frame for availment of Input Tax Credit accrued on purchases before the end of the financial year or ninety days from the date of purchase whichever is later. Section 19(11), being mandatory, the time-frame stipulated for Input Tax Credit is to be strictly construed. Section 19(11) of TN VAT Act cannot be struck down as being either unreasonable or discriminatory. We do not find any merit in the challenge to the provision of Section 19(11) of TN VAT Act. 84. The other bunch of writ petitions challenging the assessment order/show cause notices denying the credit taken in the revised returns involving Section 19(11) of TN VAT Act are not maintainable. The writ petitions challenging the constitutionality of Section 19(11) having failed the writ petitions challenging assessment orders/show cause notices have no legs to stand and therefore, they should necessarily fail. 85. In cases where final orders of assessment have been challenged, the assessees shall be entitled to prefe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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