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2016 (11) TMI 896 - MADRAS HIGH COURT

2016 (11) TMI 896 - MADRAS HIGH COURT - TMI - Input tax credit - payment of tax on purchases - credit claim by registered dealer - Held that: - Sub- Section (16) of Section 19 states that the input tax credit availed of is provisional. It, however, does not empower the authority to revoke the input tax credit availed of on a plea that the selling dealer has not paid the tax. It only relates to incorrect, incomplete or improper calim of input tax credit by the dealer - the Petitioner-dealer, admi .....

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ction(19) does not appear to be correct - if the selling dealer has not paid the collected tax and that liability has to be fastened on the selling dealer and it cannot be mulcted on the petitioners-purchasing dealers who had shown the proof of payment of tax on the purchase made. - The petitioners already paid 25% of the tax amount - Therefore, the impugned orders are set aside and the matters are remitted back to the authority concerned and the authority shall give one more opportunity of .....

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r : Mr.R.Veeramanikandan For The Respondent : Mr.R.Karthikeyan Addl.Govt.Pleader COMMON ORDER All these writ petitions have been filed by the assessee challenging the impugned orders on the ground that the order has been passed on the basis of the other dealer not paying the tax. Further, it is also stated that the petitioner is not a active dealer. 2. The learned Counsel appearing for the petitioner submitted that the petitioner produced the documents to establish that he is a regular dealer. I .....

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V.V.V & Sons Edible Oils Limited, Virudhunagar -vs - The Commercial Tax Officer -I, Virudhunagar Assessment Circle, Virudhungar(W.P(MD)Nos.13897 to 13913 of 2013) reported in 2014-15 (20) TNCTJ 205 it is very clear that the authority cannot assess the tax. The relevant paragraphs 5 and 6 would run thus: "5.It is very clearly stated that if the selling dealer has not paid the collected tax and that liability has to be fastened on the selling dealer and it cannot be mulcted on the Petitio .....

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clearly state in paragraph 3 that the Petitioner herein had paid the tax to the selling dealer. If that be the case, the Petitioner's case squarely falls under the proviso to Section 19(1) of the TNVAT Act. That is availed of only by following rule 10(2). It is also not in dispute that the self-assessment has been made under Section 22(2) of the TNVAT Act and therefore the Petitioner was justified in claiming the input tax credit. 11.It is another matter that the selling dealer has not paid .....

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x credit by the dealer. It is not so in these cases. In the present case, the Petitioner-dealer, admittedly, had paid the tax to the selling dealer and claimed input tax credit and that was accepted at the time when the self-assessment was made. Even the pre-revision notices and the orders under challenge fairly state that the Petitionerdealer had paid tax to the dealer. It is, therefore, for the Department to proceed against the selling dealer for recovery of tax in the manner known to law. The .....

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