9911796707
TMI Blog2022 (7) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... er under the provisions of the Tamil Nadu Value Added Tax Act, 2006 (in short 'TNVAT Act') and Central Sales Tax Act, 1956 (in short 'CST Act'). (ii) The petitioner was being regularly assessed under both TNVAT and CST Acts and for the period 2015-16 had claimed concessional rate of tax at 2% under Section 8(1) of the CST Act. (iii) An audit was conducted by the Enforcement Wing of the Commercial Taxes Department in August 2016, when the petitioner had been unable to substantiate its claim of concessional levy to the fullest extent, as claimed by it. (iv) It thus, deposited an amount of Rs.40,00,000/- towards nonavailability of a portion of the C-Forms as on the date of audit. (v) When the order of assessment was pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame as a boon for the petitioner which filed a TRAN-1 claiming the refund as credit carried forward. (xiv) The above admittedly, constitutes an inadmissible claim, and there is no doubt either in the Court's mind nor in the mind of the petitioner, in this regard. 3. It is in the aforesaid circumstances that the impugned order has come to be passed by the respondent who, vide a show cause notice, had initially proposed to reject the transition of the ITC and confirmed the proposal holding the petitioner liable to penalty for wrongful transition, ineligible credit as well as interest from 27.12.2017 till date of order for such ineligible claim. This order is challenged in this writ petition. 4. The submissions of Mr. Poojesh. J, learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nment Pleader for the respondents would draw my attention to Section 142(8)(b) of TNGST Act, that reads thus: 142. Miscellaneous transitional provision.- 8. a .... b. Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day under the existing law, any amount of tax, interest, fine or penalty becomes refundable to the taxable person, the same shall be refunded to him in cash under the said law, and the amount rejected, if any, shall not be admissible as input tax credit under this Act. 8. The above provision, clearly, places a restriction on the availment of credit of any amount of refund to which the taxable person is entitled under the erstwhile laws. He really need no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... based on the above given assessment order for the year 2015-16 during the month of Feb' 17 and the same is being adjusted by us against CST payment from Feb' 17 till June' 17. An amount of Rs.11,94,312/- is yet to be utilized against the refunded amount. Because of the transition from TNVAT to GST from 1st July' 17, above given unutilized amount cannot be adjusted against GST payment. Hence, we kindly request you to refund the amount as early as possible. 12. The motives of the petitioner are found to be bondfide in law, since it not only asks for a refund but also states that it is not entitled for transition under GST laws. 13. Admittedly, the respondent has sat tight on the petitioners' request and in the counter file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idenced by order dated 30.12.2016 of the first respondent wherein the amount in question has been determined as excess payment and there is no dispute raised in this regard. 16. Coming to the imposition of penalty and levy of interest under the impugned order, I am of the view that sustaining the same would be hypertechnical. No doubt, the petitioner has made an inadmissible claim of transition. However, I have noticed earlier that it was a last ditch effort by a desperate assessee and I reiterate that view. 17. The counter of the respondent would support the delay for refund citing technical problems. Such technical problems are still ongoing and thus, the petitioner cannot be expected to wait indifferently for refund. While this is the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
