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TMI Blog2016 (8) TMI 803X X X X Extracts X X X X X X X X Extracts X X X X ..... tered dealer under the Tamil Nadu Value Added Tax Act, (TNVAT Act) and the Central Sales Act (CST Act). In these writ petitions, the petitioner has challenged the impugned orders of assessment which are the revised assessment passed under Section 27(1) and (2) of the TNVAT Act for the assessment years 2007-08 to 2009-10. The only reason for revising the ITC is on the ground that the petitioner has effected purchase from the registration cancelled dealers. 3.It cannot be disputed by the learned Additional Government Pleader that an identical issue was considered in a batch of cases in the case in M/s.Jinsasan Distributors vs. Commercial Tax Officer (CT), Chintadripet Assessment Circle, Chennai reported in (2013) 59 VST 256 (Mad), wherein th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wise not taxable. The condition precedent for becoming entitled to make a tax-free resale was the purchase of the goods which were resold from a registered dealer and the obtaining from that registered dealer of a certificate in this behalf. This condition having been fulfilled, the right of the purchasing dealer to make a tax-free sale accrued to him. Thereafter to hold, by reason of something that had happened subsequent to the date of the purchase, namely, the cancellation of the selling dealer's registration with retrospective effect, that the tax-free resales had become liable to tax, would be tantamount to levying tax on the resales with retrospective effect. 5.In our view, the High Court was right. A purchasing dealer is entitl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration certificates have been cancelled with retrospective effect cannot be countenanced. Whatever benefits that has accrued to the petitioners based on valid documents in the course of sale and purchase of goods, for which tax has been paid cannot be declined. The transaction that took place when the registration certificates of the selling dealer were in force cannot be denied to the petitioners/assessees on the above plea. This is contrary to the law laid down by the Supreme Court in the above stated case. For the foregoing reasons, the notices, revised assessment orders and the provisional assessment order, insofar as it seeks to deny the benefit of input tax credit to the petitioners/assessees only on the ground that the registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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