TMI Blog2015 (3) TMI 1004X X X X Extracts X X X X X X X X Extracts X X X X ..... that it is a case which falls under Section 19(9)(i) of the TNVAT Act, which the Original Authority has failed to properly apply its mind. - A reading of the Section 19(9)(i) of the TNVAT Act makes it evident that no input tax credit shall be availed by a registered dealer for purchase of goods, if such goods are not sold because of any theft, loss or destruction, for any reason, including natural calamity, and if the dealer has already availed input tax credit against purchase of such goods, there shall be reversal of tax credit. This reversal of input tax credit has been done by the Original Authority based on the surprise inspection conducted by the Enforcement Wing on verification of the records and on coming to know that the goods on w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no finding by the Assessing Officer that the shortage was due to loss? (iii)Whether the Tribunal is correct in concluding that the shortage due to weight difference comes under the category of loss of goods as contemplated under Section 19(9)(i) of the TNVAT Act? (iv)Whether the Tribunal, being the final fact finding authority, is correct in ignoring the fact that the shortage in quantity was not found at the time of each purchase, but it was arrived at only at the end of the assessment year taking into consideration huge purchases and sales during the assessment year concerned? (v)Whether the Tribunal is wrong in overlooking the fact that the shortage was only 0.00504% (in T.C.(R) No.33 of 2014) and 0.00435% (in T.C.(R) No.34 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above said objection was overruled by the Original Authority placing reliance on Section 19(9)(i), (ii) and (iii) of the TNVAT Act. The Original Authority held that the reason given by the dealer for shortage is routine, without factual evidence, and placing reliance on Section 19(9)(ii) of the TNVAT Act, he held that input lost while in storage also becomes ineligible for input tax credit. 2.4. The dealer preferred appeals against the assessment orders before the Deputy Commissioner (CT), who reversed the orders passed by the Original Authority and held that the provisions of Section 19(9)(ii) of the TNVAT Act, are not applicable to the present case, as the petitioner is only a dealer in Iron and Steel and not a manufacturer of Iron an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C is correct Under Section 19(a)(i) and not Under Section 9(9)(ii). But, the Appellate Deputy Commissioner simply discussed the Section 9(9)(ii) and come to the conclusion that the above Section is not applicable to this case. In the light of the above discussion, this Tribunal come to the conclusion that the reversal of ITR is correct and the orders of Appellate Deputy Commissioner is not correct. Hence, the orders of Appellate Deputy Commissioner are liable to be set aside. 2.6. Challenging the said order passed by the Tribunal, the present revisions are filed on the questions of law, referred supra. 3. We have heard Mr.P.Rajkumar, learned counsel for the petitioner and Mr.A.R.Jayaprathap, learned Government Advocate appearing fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicable to the case of the petitioner and it is Section 19(9)(i) of the TNVAT Act that will be applicable. We are not inclined to accept the technical plea of the petitioner that a wrong provision, namely, Section 19(9)(ii) of the TNVAT Act, has been quoted instead of Section 19(9)(i) of the TNVAT Act, as the facts clearly establish that it is a case which falls under Section 19(9)(i) of the TNVAT Act, which the Original Authority has failed to properly apply its mind. 8. A reading of the Section 19(9)(i) of the TNVAT Act makes it evident that no input tax credit shall be availed by a registered dealer for purchase of goods, if such goods are not sold because of any theft, loss or destruction, for any reason, including natural calam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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