TMI Blog2018 (2) TMI 199X X X X Extracts X X X X X X X X Extracts X X X X ..... is an assessee on the file of the Assistant Commissioner (CT), Annal Salai - III (now in Annasalai) Assessment Circle, Chennai. Assessee was finally assessed by the assessing authority, for the assessment year 2007-08, under the Tamil Nadu Value Added Tax Act, 2006, which according to the assessee was erroneous. 3. Being aggrieved, assessee filed an appeal, before the Appellate Deputy Commissioner (CT)-IV, Chennai, which was allowed. Against this, State has filed appeal before the Tamil Nadu Sales Tax Appellate Tribunal (Main Bench), Chennai, which has been dismissed. 4. Tax Case Revision is filed on the following grounds:- 1) Recording of the fact, by the Tribunal at page 5 (para-2, line-12) that the seller is still active in the office of Assistant Commissioner (CT), Anna Salai-III Assessment Circle, is factually incorrect as the seller Tvl. Insulation House, is a registered dealer in Chintadripet Assessment Circle, with effect from 01.04.2004 and Registration cancelled, with effect from 15.04.2011. 2) Observation of the Tribunal that the Assessing Officer has not made any attempt to cross verify TIN of their seller, who is also an assessee, in the same Assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the dealers have claimed and availed. Input Tax Credit to a tune of ₹ 99,571/ - during the period from July 2007 to March 2008 on the purchases effected from Tvl.Insulation House, Chennai for the value of ₹ 24,89,267/ -. Since the Registration Number of the seller was found invalid, the Input Tax Credit availed by the dealer was reversed to the extent of ₹ 99,571/ - besides levying a penalty of ₹ 49,786/ - under Section 27(4)(i) of the Tamil Nadu Value Added Tax Act '2006 by the Assessing Officer vide his revisional order dated 02.02.2012. 8. Under the Value Added Tax Act, the tax is payable at every point of sale on value addition. The Act also provides for the set off of the tax if it has been paid or payable by the selling dealer. The said amount of tax can be adjusted or set off by way of Input Tax Credit from the tax which is payable by the purchasing dealer on its subsequent sale. Section 2(24) defines the term Input Tax which means that: (24) Input tax means the tax paid or payable under this Act by a registered dealer to another registered dealer on the purchase of goods including capital goods in the course of this busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule 10 of the Tamil Nadu Value Added Tax Rules. Rule 10(2) provides the manner of establishing that the claim on Input Tax Credit, which reads as follows: 10. (2) Every registered dealer who claims Input Tax Credit under sub-section (1) of Section 19 shall, produce the original tax invoice, in support of his claim of the Input Tax Credit, containing the following details, namely :- (i) A consecutive serial number; (ii) The date on which the invoice is issued; (iii) The name, address and the taxpayer identification number of the seller; (iv) The name, address and the taxpayer identification number of the buyer; (v) The description of the goods; (vi The quantity of volume of the goods; (vii) The value of the goods (viii) The rate and amount of tax charged; and (ix) The total value of the goods. 10. Going by the above said rule and read along with section 19(1) of the Tamil Nadu Value Added Tax Act, it is clear that so long as the purchasing dealer has complied with the requirements as given under rule 10(2), the claim of the purchasing dealer cannot, by any length of reasoning, be denied by the Revenue. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 19(1) of the Tamil Nadu Value Added Tax Act '2006 states that Input Tax Credit can be claimed by a registered dealer, if he establishes that the tax due on such purchases has been paid by him in the manner prescribed and that was accepted at the time when the self-assessment was made. The Hon'ble High Court of Madras in the case of Sri Vinayaga Agencies v. Assistant Commissioner (CT), Vadapalani - I assessment circle, Chennai and another reported in 60 VST 283 wherein it was held that allowing the petition, (i) that at the time of filing the self - assessment return Section 22(2), the petitioner - dealer had followed rule 10(2) of the Tamil Nadu Value Added Tax Rules, 2007 and therefore, could not be said to have wrongly availed of input tax credit wrongly. Section 19(1) states that input tax credit can be claimed by a registered dealer, if he establishes that the tax due on such purchase has been paid by him in the manner prescribed and that was accepted at the time when the self-assessment was made. The pre-revision notices and the orders clearly stated that the petitioner-dealer had paid the tax to the selling dealer. If that be the case, the petitioner's c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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