9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (9) TMI 377 - HC - GSTTransition of amount that was to be deposited by the petitioner as a condition under the provisions of the Tamil Nadu Value Added Tax (TNVAT) Act, 2006 against the Assessment Order dated 21.10.2010 passed by the Assessing Officer for the Assessment Year 2006-2007 - HELD THAT - As a condition for entertaining the appeal under Section 51 of the TNVAT Act, 2006, an amount of Rs. 6,25,000/- was pre-deposited. There is no dispute that the petitioner was indeed entitled to refund of amount pre-deposited pursuant to the order of the Appellate Deputy Commissioner dated 18.10.2013 pursuant to which, a fresh revised Assessment Order was also passed on 24.07.2015. At best, the respondents could have appropriated the balance tax liability due of Rs. 3,902.00/- from and out of the amount pre-deposited under Section 51 of the TNVAT Act, 2006, while filing appeal against the Assessment Order dated 21.10.2010. Although the petitioner may have wrongly followed the procedure by transitioning the amount, the issue is revenue neutral as admittedly the Commercial Tax Department was duty bound to refund the amount that was pre-deposited as condition for filing appeal before the Appellate Deputy Commissioner against the Assessment Order dated 21.10.2010 pursuant to the revised Assessment Order dated 24.07.2015 dropping the demand substantially. The impugned order dated 26.10.2021 passed by the first respondent affirming the order dated 22.10.2020 of the second respondent is quashed with consequential relief - Petition allowed.
Issues:
Challenge to order under TNVAT Act, 2006 for transition of pre-deposited amount under CST Act, 1956. Appeal under TNGST Act, 2017. Entitlement to transition pre-deposited amount. Validity of impugned orders. Analysis: The petitioner challenged an order under the Tamil Nadu Value Added Tax (TNVAT) Act, 2006, regarding the transition of a pre-deposited amount under the Central Sales Tax (CST) Act, 1956. The petitioner had earlier faced an adverse assessment under the CST Act, resulting in a tax liability. An appeal was filed, leading to a revised assessment order that significantly reduced the tax liability to be paid by the petitioner. However, the Commercial Tax Department failed to refund the pre-deposited amount as required. The petitioner attempted to transition this unutilized amount under the Tamil Nadu Goods and Services Tax (TNGST) Act, 2017, to discharge the tax liability for the subsequent period. The authorities negated the petitioner's attempt, leading to a proposal for recovery of a substantial sum along with interest. The petitioner appealed under the TNGST Act, 2017, which was rejected. The Government Advocate argued that the petitioner was only entitled to transition unutilized Input Tax Credit under the TNGST Act, 2017, not the pre-deposited amount. It was contended that the petitioner had an alternative remedy before the GST Tribunal, and thus, the writ petition should be dismissed. Upon considering the arguments, the court found that the impugned orders were not sustainable. The court noted that the petitioner was entitled to a refund of the pre-deposited amount, which could have been adjusted against the tax liability due. While the petitioner may have erred in the procedure followed for transition, the issue was revenue-neutral as the Commercial Tax Department was obligated to refund the pre-deposited amount. The court held that the impugned order confirming the denial of transition was quashed, providing consequential relief to the petitioner. Ultimately, the court allowed the Writ Petition, with no costs imposed, and closed the connected Writ Miscellaneous Petition.
|
