2017 (11) TMI 744 - HC - VAT and Sales Tax

Interpretation of Statute - Section 19(2) of the Tamilnadu Value Added Tax Act, 2006 - whether proviso to Section 19(2) of the Tamilnadu Value Added Tax Act, 2006, applies both to the registered dealers and manufacturers? - Held that - if the request of the assessees/manufacturers is conceded, the revenue involved would be above ₹ 1000 Crores - we deem it fit to admit the writ appeal and grant interim stay of the impugned judgment - appeal admitted.

Summary

Issues: Correct interpretation of Section 19(2) of the Tamilnadu Value Added Tax Act, 2006 regarding its applicability to manufacturers and registered dealers.

In the judgment delivered by the High Court of Madras, the core challenge was the correctness of the interpretation of Section 19(2) of the Tamilnadu Value Added Tax Act, 2006. The Court had to determine whether this section applied to manufacturers or only to registered dealers. The Court heard arguments from the learned Advocate General, who highlighted the provisions and reasoning of the writ Court. The Advocate General pointed out that several writ petitions were pending due to the impugned order, with demands for refunds of Input Tax Credit (ITC) being made by the assessees/manufacturers. It was emphasized that granting the requests of the assessees/manufacturers could involve a significant revenue of over ?1000 Crores.

In response to the importance of the issue and being satisfied with the submissions of the Advocate General, the Court directed the cause papers to be served on the respondent. Recognizing the gravity of the matter, the Court decided to admit the writ appeal and granted an interim stay on the impugned judgment. The Court also instructed the Special Government Pleader (Tax) to expedite the admission of all appeals and to consolidate all related writ petitions to avoid redundancy and multiple proceedings. The case was scheduled for further proceedings on 10.11.2017.