Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2017 (3) TMI HC This

  • Login
  • Cases Cited
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2017 (3) TMI 536 - HC - VAT and Sales Tax


  1. 2024 (7) TMI 461 - HC
  2. 2024 (4) TMI 622 - HC
  3. 2024 (4) TMI 219 - HC
  4. 2023 (4) TMI 912 - HC
  5. 2023 (3) TMI 831 - HC
  6. 2023 (4) TMI 596 - HC
  7. 2022 (12) TMI 715 - HC
  8. 2022 (11) TMI 398 - HC
  9. 2022 (9) TMI 162 - HC
  10. 2022 (7) TMI 184 - HC
  11. 2022 (6) TMI 1077 - HC
  12. 2022 (6) TMI 857 - HC
  13. 2022 (5) TMI 307 - HC
  14. 2022 (4) TMI 1352 - HC
  15. 2022 (4) TMI 1351 - HC
  16. 2022 (5) TMI 199 - HC
  17. 2022 (1) TMI 664 - HC
  18. 2022 (1) TMI 560 - HC
  19. 2022 (1) TMI 806 - HC
  20. 2022 (1) TMI 504 - HC
  21. 2021 (12) TMI 1376 - HC
  22. 2021 (11) TMI 1036 - HC
  23. 2021 (11) TMI 1152 - HC
  24. 2021 (10) TMI 1126 - HC
  25. 2021 (9) TMI 84 - HC
  26. 2021 (8) TMI 1120 - HC
  27. 2021 (7) TMI 126 - HC
  28. 2021 (6) TMI 374 - HC
  29. 2021 (7) TMI 586 - HC
  30. 2021 (5) TMI 367 - HC
  31. 2021 (5) TMI 561 - HC
  32. 2021 (6) TMI 293 - HC
  33. 2021 (6) TMI 142 - HC
  34. 2021 (4) TMI 511 - HC
  35. 2021 (3) TMI 186 - HC
  36. 2021 (3) TMI 234 - HC
  37. 2021 (2) TMI 1289 - HC
  38. 2021 (2) TMI 405 - HC
  39. 2020 (12) TMI 1123 - HC
  40. 2020 (12) TMI 1168 - HC
  41. 2021 (1) TMI 308 - HC
  42. 2020 (11) TMI 576 - HC
  43. 2020 (11) TMI 660 - HC
  44. 2020 (11) TMI 721 - HC
  45. 2020 (9) TMI 221 - HC
  46. 2020 (8) TMI 161 - HC
  47. 2020 (7) TMI 672 - HC
  48. 2020 (5) TMI 471 - HC
  49. 2020 (5) TMI 501 - HC
  50. 2020 (4) TMI 143 - HC
  51. 2020 (4) TMI 4 - HC
  52. 2020 (4) TMI 148 - HC
  53. 2020 (5) TMI 636 - HC
  54. 2020 (1) TMI 506 - HC
  55. 2019 (10) TMI 489 - HC
  56. 2019 (9) TMI 10 - HC
  57. 2019 (7) TMI 1756 - HC
  58. 2019 (8) TMI 199 - HC
  59. 2019 (7) TMI 1295 - HC
  60. 2019 (7) TMI 1399 - HC
  61. 2019 (7) TMI 1398 - HC
  62. 2019 (7) TMI 1239 - HC
  63. 2019 (7) TMI 1009 - HC
  64. 2019 (7) TMI 455 - HC
  65. 2019 (7) TMI 719 - HC
  66. 2019 (7) TMI 393 - HC
  67. 2019 (7) TMI 718 - HC
  68. 2019 (7) TMI 144 - HC
  69. 2019 (7) TMI 244 - HC
  70. 2019 (6) TMI 1501 - HC
  71. 2019 (7) TMI 49 - HC
  72. 2019 (6) TMI 1138 - HC
  73. 2019 (6) TMI 939 - HC
  74. 2019 (5) TMI 709 - HC
  75. 2019 (5) TMI 708 - HC
  76. 2019 (3) TMI 1617 - HC
  77. 2019 (5) TMI 907 - HC
  78. 2019 (3) TMI 1213 - HC
  79. 2019 (2) TMI 1447 - HC
  80. 2019 (1) TMI 1966 - HC
  81. 2018 (12) TMI 1900 - HC
  82. 2018 (12) TMI 1281 - HC
  83. 2019 (1) TMI 305 - HC
  84. 2019 (1) TMI 162 - HC
  85. 2019 (1) TMI 161 - HC
  86. 2018 (11) TMI 62 - HC
  87. 2018 (10) TMI 943 - HC
  88. 2018 (10) TMI 1407 - HC
  89. 2018 (10) TMI 1362 - HC
  90. 2018 (10) TMI 384 - HC
  91. 2018 (9) TMI 726 - HC
  92. 2018 (9) TMI 549 - HC
  93. 2018 (7) TMI 1428 - HC
  94. 2018 (7) TMI 1427 - HC
  95. 2018 (6) TMI 902 - HC
  96. 2018 (4) TMI 1913 - HC
  97. 2018 (4) TMI 462 - HC
  98. 2018 (3) TMI 1273 - HC
  99. 2018 (3) TMI 1941 - HC
  100. 2018 (4) TMI 533 - HC
  101. 2018 (2) TMI 1781 - HC
  102. 2018 (2) TMI 1657 - HC
  103. 2018 (3) TMI 1 - HC
  104. 2017 (11) TMI 1950 - HC
  105. 2017 (10) TMI 1168 - HC
  106. 2017 (10) TMI 883 - HC
  107. 2017 (11) TMI 134 - HC
  108. 2017 (10) TMI 112 - HC
  109. 2017 (9) TMI 1470 - HC
  110. 2017 (9) TMI 198 - HC
  111. 2017 (8) TMI 1459 - HC
  112. 2017 (8) TMI 1726 - HC
  113. 2017 (9) TMI 7 - HC
  114. 2017 (8) TMI 1260 - HC
  115. 2017 (7) TMI 1064 - HC
  116. 2017 (10) TMI 487 - HC
  117. 2017 (6) TMI 1287 - HC
  118. 2017 (6) TMI 609 - HC
  119. 2017 (6) TMI 986 - HC
  120. 2017 (8) TMI 85 - HC
  121. 2017 (4) TMI 1158 - HC
  122. 2017 (3) TMI 1842 - HC
  123. 2017 (4) TMI 830 - HC
  124. 2017 (3) TMI 1273 - HC
  125. 2017 (3) TMI 1110 - HC
Issues Involved:
1. Reversal of Input Tax Credit (ITC) under the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) and the Central Sales Tax Act, 1956 (CST Act).
2. Procedural aspects and statutory compliance in reversing ITC.
3. Jurisdiction and fairness of the procedure adopted by Assessing Officers.
4. Impact of statutory amendments and the requirement of establishing tax payment by the selling dealer.
5. Maintainability of writ petitions challenging the procedural aspects of ITC reversal.

Detailed Analysis:

1. Reversal of Input Tax Credit (ITC):
The core issue pertains to the reversal of ITC by Assessing Officers based on mismatches between the returns filed by purchasing and selling dealers. The mismatch cases, often referred to as "mismatch/web report batch of cases," involve discrepancies identified through data verification by the Commercial Tax Department.

2. Procedural Aspects and Statutory Compliance:
The court examined various provisions of the TNVAT Act, including Sections 19, 21, 22, 25, and 27, which outline the requirements for claiming ITC and the procedures for assessment and reassessment. The court emphasized that the statutory provisions mandate an enquiry before reversing ITC, and this includes verifying the correctness of returns and conducting a thorough investigation.

3. Jurisdiction and Fairness of the Procedure Adopted by Assessing Officers:
The court noted that the Assessing Officers have been reversing ITC based solely on data mismatches without conducting proper enquiries or providing detailed information to the dealers. The court highlighted the importance of adhering to the principles of natural justice, which require providing dealers with invoice-wise data of mismatches and ensuring a fair hearing.

4. Impact of Statutory Amendments and Requirement of Establishing Tax Payment by the Selling Dealer:
The court discussed the amendment to Section 19(1) of the TNVAT Act, which substituted "tax paid or payable" with "tax paid," effective from 29.01.2016. The court clarified that this amendment does not significantly alter the requirement for dealers to establish that tax has been paid to claim ITC. The court also referenced similar provisions in other states, such as Maharashtra, Gujarat, and Delhi, and noted that the entitlement to ITC is a concession granted by the statute, subject to strict compliance with statutory conditions.

5. Maintainability of Writ Petitions:
The court rejected the revenue's objection regarding the maintainability of the writ petitions, stating that the existence of an alternate remedy does not automatically oust the jurisdiction of the court under Article 226 of the Constitution of India. The court held that the writ petitions are maintainable as they challenge the procedural aspects adopted by the Assessing Officers, which are alleged to be in violation of statutory requirements and principles of natural justice.

Conclusion:
The court allowed the writ petitions, set aside the impugned orders/notices, and remanded the matters to the respective Assessing Officers for fresh consideration. The court directed the Assessing Officers to conduct thorough enquiries in consultation with the Assessing Officers of the other end dealer and to follow a fair and reasonable procedure. The court also emphasized the need for the Commissioner of Commercial Taxes to evolve a centralized mechanism to handle mismatch cases and recommended considering the procedures adopted in other states. The court directed that no plea of limitation would be entertained by the petitioners/dealers when fresh show cause notices are issued.

 

 

 

 

Quick Updates:Latest Updates