2009 (10) TMI 833 - HC - VAT and Sales Tax

Summary

Issues:
Challenge to notice demanding input tax credit on capital goods adjusted by petitioner.

Analysis:
The petitioner, engaged in the manufacture of alcoholic beverages, claimed input tax credit on the purchase of capital goods under the Tamil Nadu Value Added Tax Act, 2006. The first respondent issued a notice stating the petitioner was not entitled to input tax credit as per the Act's proviso to section 3(5) and directed the petitioner to file a different form. The petitioner objected, arguing they were entitled to the benefit of input tax credit based on the specific exclusion of "capital goods" in the proviso. The court directed the respondent to consider the petitioner's claim within four weeks and make a decision in accordance with the law, allowing the petitioner to submit additional material or objections. The court emphasized that the authorities should assess whether the definition of "goods" impacts the proviso to section 3(5) and referred to section 19(3) for guidance.

If the petitioner disagrees with the outcome, they have the option to utilize remedies under the Act. The court declined to interfere with the respondent's decision, stating that the authorities should address the raised issues. Ultimately, the writ petition was disposed of without any costs incurred by either party.