TMI Blog2016 (6) TMI 1287X X X X Extracts X X X X X X X X Extracts X X X X ..... , the claim of the purchasing dealer cannot, by any length of reasoning, be denied by the Revenue. The mere fact that the Revenue had not made an assessment on the assessee's vendor, per se, cannot stand in the way of the assessing officer considering the claim of the assessee under section 19 of the Tamil Nadu Value Added Tax Act - petition allowed - decided in favor of petitioner. - W. P. No. 17980 of 2015, M. P. No. 1 of 2015 - - - Dated:- 8-6-2016 - Mr. T.S. Sivagnanam, J. For Petitioner: Mr.P.Kumar For Respondent : Mr.Manokaran Sundaram Additional Government Pleader ORDER Heard Mr.P.Kumar, learned Counsel appearing for the petitioner and Mr.Manokaran Sundaram, learned counsel appearing on behalf of the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her end dealers (selling dealers), it is proved that the selling dealers have not filed returns or reflected the sales effected to the dealer during the month and hence the claim of input tax credit by the petitioner is not eligible and liable to be reversed as per section 19(6) of the VAT Act and the petitioner also liable for penalty under section 27(4) of the Act. 5. The only question which requires to be considered in the instant case is whether the input tax credit availed by the petitioner could have been directed to be reversed on the grounds assigned by the respondent. The only answer to the question should be 'negative', in the light of the various decisions of this Court, rendered on the same point. 6. At this junctu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at, the Revenue could not deny the claim of the assessee. Going by Rule10(2) of TN Vat Rules read along with section 19(1) of the TN Vat 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 mere fact that the Revenue had not made an assessment on the assessee s vendor, per se, cannot stand in the way of the assessing officer considering the claim of the assessee under section 19 of the Tamil Nadu Value Added Tax Act. A reading of the circular issued by Commissioner along with the provisions of the Act makes it clear that there is nothing repugnant in the said circular issued by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be fastened on the selling dealer and not on the petitioner-dealer which had shown proof of payment of tax on purchases made. The orders were thus set-aside. 8. The above referred decisions were taken into consideration by this Court in the case of INFINITI WHOLESALE LIMITED v. THE ASSISTANT COMMISSIONER (CT) KOYAMBEDU ASSESSMENT CIRCLE [2015 (82) VST 457]. In that case also, notice was issued by the Assessing Officer, stating that there was a short reporting of turnover by the registered vendors of the petitioner therein and those vendors were not registered dealers and they had not paid tax and yet the petitioner therein had taken credit. After following the decisions in the case of ALTHAF SHOES (P) LTD., and in the case of SRI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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