TMI Blog2024 (2) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax and in case where registration certificate of the selling dealer is cancelled by the appropriate authorities, the purchasing dealer who had availed by way of Input Tax Credit shall pay the amount availed on the date from which the order of cancellation of registration certificate tax effected. Apart from that, the purchasing dealer shall by liable to pay interest also. Section 40 prohibits an unregistered dealer from collection any amount by way of tax. In the present case, admittedly, the petitioner has not produced the original tax invoice from a registered dealer and therefore, he cannot complaining that the authorities are attempting to reverse the Input Tax Credit in his favour. In fact, the petitioner has effected purchase five ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ised whole sale dealer namely M/s.Smart Trading Company, Madurai in September 2008. The petitioner had filed monthly returns in Form-I in the month of September for the assessment year 2008-2009 and claimed input tax credit for the purchase made during the relevant month. (ii) On 11.03.2009, the third respondent had issued a notice proposing to reverse the Input Tax Credit claimed by the petitioner to the tune of Rs. 1,04,673/- for the month of September 2008 on the ground that the registration of the selling dealer was already cancelled. According to the learned counsel for the petitioner, as per Section 19(10)(a) of the Tax Value Added Act, 2006, the only condition imposed for claiming input tax credit is to produce the original tax in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proposed to reverse the claim of Input Tax Credit to the extent of Rs. 1,04,673/- under Section 19(16) of TNVAT Act 2006 by an audit notice dated 11.03.2009. 5. The learned Additional Government Pleader had contended that the audit notice issued on 11.03.2009 would not amount to double taxation, in view of the fact that the wholesale dealer ( whose registration has been cancelled) has not paid any tax at all. He had further contended that when the petitioner seeks to take advantage of Section 19 TNVAT Act 2006, he is bound to adhere to the condition imposed under the said section for availing Input Tax Credit. The petitioner has not chosen to send any reply to the notice dated 11.03.2009 and instead he had filed the present writ petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of input tax credit by the dealer to the date of its payment. 9. The writ petitioner herein being a registered dealer had effected purchase from the wholesale dealer namely M/s.Smart Trading Company, Madurai in September 2008. It is not in dispute by the writ petitioner that the registration of the wholesale dealer has been cancelled by the authorities on 21.04.2008 itself. 10. Section 40 of the Tamil Nadu Value Added Tax Act, 2006 is extracted as follows: 40.Collection of tax. -- (1) No person, who is not a registered dealer, shall collect any amount by way of tax or purporting to be by way of tax under this Act; and no registered dealer shall make any such collection except in accordance with the provisions of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has to furnish the original tax invoice of the sale evidencing amount of Input Tax and in case where registration certificate of the selling dealer is cancelled by the appropriate authorities, the purchasing dealer who had availed by way of Input Tax Credit shall pay the amount availed on the date from which the order of cancellation of registration certificate tax effected. Apart from that, the purchasing dealer shall by liable to pay interest also. Section 40 prohibits an unregistered dealer from collection any amount by way of tax. 12. The Hon'ble Supreme Court in a judgment reported in (2016) 15 SCC 125 (Jayam and Company Vs. Assistant Commissioner and another) in paragraph No.12 has held as follows: 12. It is a trite la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. In the present case, admittedly, the petitioner has not produced the original tax invoice from a registered dealer and therefore, he cannot complaining that the authorities are attempting to reverse the Input Tax Credit in his favour. In fact, the petitioner has effected purchase five months after cancellation of the registration of the selling dealer. Since the registration of the selling dealer had already been cancelled in April 2008, he would not have paid the tax. Therefore, the allegation of the petitioner that the notice issued by the respondent authorities for reversing the Input Tax Credit would amount to double taxation is not legally sustainable. 14. Though the petitioner has challenged the constitutional validity of a fisc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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