2014 (5) TMI 646 - HC - VAT and Sales Tax

Validity of learned HC Single Judge order - Preferring of appeal No proof of payment of tax Held that - Judgment in Lakshmi Rattan Engineering Works vs. Assistant Commissioner 1967 (9) TMI 116 - SUPREME COURT OF INDIA followed - Appellant while preferring an appeal is bound to comply with the conditions prescribed u/s 51 of the Act more particularly the condition relating to payment of tax in the second proviso. Input Tax Credit - Whether the appellant is entitled for adjustment of the input tax credit available Held that - It is seen that the input tax credit has already been adjusted by the assessing authority in the order of assessment dated 15.10.2010 - Thus the question whether Section 19 and 51 of the Act have to be read together becomes academic and is not required to be decided in the instant case since the authorities have already adjusted the ITC. Whether full and proper adjustment has been made by the department Held that - The appellant themselves carried forward the ITC of Rs. 14, 67, 241/- accrued from the amount which is outstanding as on 31.03.2007 thus leaving the net eligible ITC at Rs. 63, 74, 247/- - Thus the assessing authority rightly adjusted the net ITC available for the period of assessment - The appellant would submit that as on date there is ITC to the tune of Rs. 8, 54, 851/- and the same should be given credit to - This contention raised by the learned counsel does not merit any acceptance since the appellant s appeal relates to an order of assessment passed for the assessment year 2007-08 i.e. for the year ended 31.03.2008 and as on the said date the total tax payable after adjusting ITC comes to Rs. 13, 43, 453 - Therefore the respondents have rightly calculated the actual amount payable at Rs. 9, 58, 613/- for entertaining the appeal by the appellate authority -Therefore no ground to interfere with the order passed by the learned Single Judge - Writ appeal fails and dismissed - Connected miscellaneous petition is closed Decided against assessee.

Summary

Issues:
1. Appeal against the judgment and order dated 17.02.2011 in W.P.No.2974 of 2011.
2. Compliance with requirements under Section 51 of the Tamil Nadu Value Added Tax Act, 2006.
3. Adjustment of input tax credit and payment of requisite amounts.

Analysis:

Issue 1:
The appeal was directed against the judgment and order dated 17.02.2011 in W.P.No.2974 of 2011. The writ petitioner sought a writ of Certiorarified Mandamus to quash the endorsement made by the Appellate Deputy Commissioner-I, Commercial Taxes, directing payment under Section 51 of the Act.

Issue 2:
The appellant contended that they should not be compelled to pay a specific sum as they had already paid a portion and had input tax credit (ITC) eligibility. The authorities were argued to be obligated to adjust the ITC amount available to the appellant. The assessing authority's partial adjustment of ITC was also challenged.

Issue 3:
The respondents argued that the appellant's ITC claim was disallowed due to procedural issues, and the adjustment made by the assessing authority was justified. The statutory requirement under Section 51 of the Act was emphasized, stating that payment of requisite amounts was necessary for appeal consideration.

The court held that compliance with Section 51 conditions was mandatory for appeal filing. The appellant's entitlement to ITC adjustment was discussed, but as the ITC had already been adjusted by the assessing authority, the issue was deemed academic. The court found the assessing authority's adjustment of ITC to be proper based on the available credit. The appellant's claim for additional ITC adjustment was rejected as it related to a different assessment year.

In conclusion, the court upheld the single judge's order, dismissing the writ appeal with no costs.