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TMI Blog2018 (2) TMI 1481X X X X Extracts X X X X X X X X Extracts X X X X ..... on in VAT Cell/41922/2007 (VCC No.1161), dated 29.08.2007 has been issued with regard to the compounding scheme in respect of one Mr.Nanjundamoorthy, Sundaram Complex, 19-F, Co-op. Colony, Mettupalayam, Coimbatore District and as per the said clarification, the said assessee is eligible for input tax credit for his purchases made from the beginning of the year, but the time barred sales tax credit to stock held as on 31.12.2006 cannot be claimed. Appeal allowed in part. - W.A.(MD)No.699 of 2011 and M.P.(MD)No.1 of 2011 - - - Dated:- 9-1-2018 - MR. M.SATHYANARAYANAN AND MRS. R.HEMALATHA, JJ. For The Appellant : Mr.A.Chandrasekaran For The Respondent : Mr.M.Murugan Government Advocate JUDGMENT [Judgment of the Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on made by the learned Counsel appearing for the appellant/writ petitioner is that though as contemplated under Section 34(b) of the TNVAT Act, the appellant/writ petitioner did not inform the assessing Authority in writing within 7 days from the date on which his turn over exceeded Rupees Fifty Lakhs, the fact remains that even prior to the said amendment, he has remitted the tax in Form -I on 22.04.2008 and however, without taking note of the same, the input tax credit claimed by him also said to be negatived and the same is unjustified in law as well as in equity. 6. The attention of this Court was also invited to the compounding scheme VAT Cell/41922/2007 (VCC No.1161), dated 29.08.2007 downloaded from www.tnvat.gov.in, wherein a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Authority in writing within 7 days from the date on which, the turn over reached Rupees Fifty Lakhs and admittedly, he did not inform the same within the time stipulated and as a natural corollary, the assessee can be given the input tax credit within 90 days from the date of receipt of the said communication and since it has not been done, the revised assessment order came to be passed and would further contend that the learned Single Judge has also taken note of the effective alternative remedy available to the appellant/writ petitioner and rightly directed him to do so and hence, prays for dismissal of the writ appeal. 9. This Court has considered the rival submissions and perused the materials placed before this Court as well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... strict is hereby informed that if a dealer is paying tax under Section 3(4) of the Act and in the middle of the year his turnover has crossed rupees fifty lakhs, then he will not be eligible for payment under Section 3(4) of the Act for the entire year, i.e., he has to pay tax at the higher rate on the sale in which he has collected tax at 0.5%. He is eligible for input tax credit for his purchases made from the beginning of the year. But the time barred sales tax credit relating to stock held as on 31.12.2006 cannot be claimed. 13. The said circular was also taken note of by the learned Single Judge, while disposing of the writ petitions in W.P.Nos.6255 and 6256 of 2010, dated 22.04.2010 M/S C.K.G.Agencies, represented by its pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner's clarification is binding on the Assessing Authority, it is necessary that the assessment has to be reviewed in accordance with law as well as the clarification. It however has to be noted that in the rectification petition filed by the petitioner, there are hardly any details as to the month when the turnover exceeded ₹ 50,00,000/- limit for the purpose of granting the benefit of Input Tax Credit. 4.In the circumstances, the order passed by the respondent is set aside and the petitioner is hereby directed to furnish the details of the turnover crossing ₹ 50,00,000/-. On such furnishing of the details, the respondent shall take into account the Commissioner's clarification and pass orders in accordance wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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