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TMI Blog2017 (8) TMI 1203X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner (CT) (FAC) [2017 (3) TMI 279 - MADRAS HIGH COURT], where it was held that A plain reading of the provisions of sub-section (1) and sub-section (2) of Section 19 of the 2006 Act would show that, as long as specified goods, which suffer tax are used for any of the purposes set out in clauses (i) to (vi) of sub-section (2) of Section 19, the assessee should be able to claim the ITC, with a caveat in so far as clause (v) is concerned. The caveat being, the limitation, which is encapsulated in the proviso to Section 19(2) of the 2006 Act - respondent are directed to consider the petitioner's letter/representation, dated 04.07.2017 - petition allowed by way of remand. - Writ Petition No. 18661 of 2017 - - - Dated:- 17-8-2017 - T. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a registered dealer, and thereafter, are used for the purpose set out in clauses (i) to (vi), as delineated in sub-section (2) of Section 19 of the 2006 Act. 20.1 The proviso to sub-section (2) of Section 19 limits the availment of ITC by providing that ITC shall be allowed in excess of 3% of the tax for the purposes specified in clause (v). Clause (v), if read with sub-section (2) of Section 19 would have me conclude that, if, an assessee were to purchase taxable goods specified in the First Schedule, which were sold in the course of Inter-State Trade or Commerce against declarations made in form 'C', an assessee would be allowed ITC only in excess of 3% of the tax paid on such purchases. 20.2 Therefore, there is, to my ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counterparts in the neighbouring States. The relevant part of the Statement of Objects and Reasons, which sheds light on this aspect of the matter is extracted hereunder, for the sake of convenience: In the Budget Speech for the year 2015-2016, among others, the following announcements were made:- (i) Input tax credit reversal imposed at the rate of 3 per cent on the Inter-State sale of goods as per proviso to Section 19(2)(v) of Tamil Nadu Value Added Tax Act, 2006, which was introduced with effect from 11-11-2013 will be withdrawn henceforth to make the manufacturing industries in Tamil Nadu more competitive with their counterparts in the neighbouring States. 4. The learned counsel appearing for the petitioner submits t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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