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TMI Blog2020 (4) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... has been paid by him in the manner prescribes, this fact was duly proved by the purchasing dealer in the present case and the assessing authority himself has noted the said fact, therefore, there was no question of denying the input tax credit in the hands of the purchasing dealer against out put dealer, in terms of 19(1) of the Act, as it stood for the period in question 2009-2010. Such giving of input tax credit in the hands of purchasing dealer, however does not deprive Revenue authorities to proceed against the selling dealer M/s Tvl.Classic Enterprises, to recover the tax paid by the Purchasing dealer. In the present case, for non-deposit of due tax collected form the purchasing dealer M/s.Vinayaga Agencies, the Revenue is therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 19(1) of the Act, as it was stood prior to the amendment, with effect from 29.1.2016, which was substituted by the 2nd Amendment Act 13 of 2015, in Section 19 of the Act. The relevant observations of the learned Single Judge in the order impugned before us are quoted below for ready reference. 7. The provision of section 19(1) clearly states that input tax credit can be claimed by the registered dealer, provided if the registered dealer establishes that the tax due on such purchase has been paid by him in the manner prescribed. The pre-revision notices and the orders clearly state in paragraph-3 that the petitioner herein had paid the tax to the selling dealer. If that be the case, the petitioner s case squarely falls under the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve. All the revision orders revising the input tax credit on the admitted case of tax having been paid to the selling dealer, therefore, are found to be totally incorrect, erroneous and contrary to the provisions of the TNVAT Act and Rules. As a result, all the orders are liable to be set aside. 10. For all the above reasons, the impugned orders are set aside and the writ petitions are allowed. 2. The assessing authority himself has noted the fact in the impugned assessment order dated 11.1.2013 for the assessment year 2009-2010, that the petitioner assessee Tvl. Vinayaga Agency had duly paid the tax in question to its seller Tvl.Classic Enterprises, from whom, it had purchased the lubricants during the period in question. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r he is non existent dealer, the interest of the Revenue deserves to be safeguarded in this regard and no input tax credit can be allowed unless the selling dealer has deposited the due tax collected from the purchasing dealer with the State Treasury. He also drew the attention of this Court to the amendment in the provisions of Section 19(1) of the TNVAT Act with effect from 29.1.2016 and submitted that, that should be treated as amendment of clarificatory in nature. 5. Learned counsel for the assessee, supporting the impugned order of the learned Single Judge, would submit that in view of the admitted position that the purchaser had duly paid the tax to its selling dealer, he could not be deprived of the right to claim input tax credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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