2014 (7) TMI 1010 - HC - VAT and Sales Tax

Restoration of input tax credit - Petitioner had reversed the entire input tax credit relating to transfer of goods, otherwise by way of sale outside the State of Tamil Nadu from the assessment year 2008-09, rather than retaining the Input Tax Credit in excess of 3% which caused a considerable loss to the petitioner company - Petitioner s request for restoration not considered - Held that - without going into the merits of the averments raised in the writ petition as well as in the representation of the petitioner, dated 20.04.2012, directs the respondent to consider the representation of the petitioner, dated 20.04.2012 and to pass an appropriate order, on merits and in accordance with law, within a period of eight weeks from the date of receipt of a copy of this order - Decided in favour of assessee.

Summary

Issues:
Petitioner seeks mandamus for restoration of Input Tax Credit in excess of 3% for assessment year 2008-09.

Analysis:
The petitioner, a manufacturer of sewing thread, zips, and interlining fabrics, filed a writ petition seeking a Writ of Mandamus to direct the respondent to consider the representation dated 20.04.2012. The petitioner had reversed the entire input tax credit relating to the transfer of goods outside Tamil Nadu for the assessment year 2008-09, causing a significant loss. The petitioner requested the assessing authority to restore the Input Tax credit of Rs. 28,81,753 excessively reversed by mistake. The court noted that under Section 19(4) of the TNVAT Act, Input Tax credit is allowed on tax paid or payable in the State on the purchase of goods in excess of three percent, subject to conditions. The court directed the respondent to consider the petitioner's representation and pass an appropriate order within eight weeks, without delving into the merits of the case.

The court emphasized that the respondent must consider the petitioner's representation dated 20.04.2012 and make a decision based on merits and in accordance with the law within the stipulated timeframe. The judgment did not delve into the specifics of the petitioner's claims but focused on the procedural aspect of ensuring the representation is duly considered and addressed by the respondent. The court disposed of the writ petition without imposing any costs on either party, highlighting the importance of timely consideration and resolution of the petitioner's request for the restoration of Input Tax Credit.