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TMI Blog2021 (9) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner (CT), Park Road Circle, Erode and Another [ 2017 (10) TMI 185 - MADRAS HIGH COURT] where it was held that the respondents cannot retain ITC on goods purchased within the State, by invoking provision of section 19(4) of the 2006 Act to the extent of rate of tax provided therein, ie., three per cent (which was the rate provided therein at the relevant point of time), as that would make the relief inefficacious since the subject goods, i.e., bullion / wornout jewellery on which tax credit was sought by the writ petitioner was imposed at the rate of one per cent. The impugned order of Assessment is set aside and the respondents are directed to adjudicate the issues by affording opportunity to the writ petitioner and pass fres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uffered raw materials, i.e., bullion/worn-out jewellery for conversion into final product (i.e.,Jewellery) outside the State which upon conversion are received back and sold within the State of Tamil Nadu. Thus, according to us, the mere fact that the manufacturing unit is located outside the State of Tamil Nadu, cannot be the basis, for denial of ITC, under Section 19(1) of the 2006 Act. Clause (ii) of subsection (2) of section 19 of the 2006 Act is, thus, declared bad in law. 31.For the very same reason, we also hold that the respondents cannot retain ITC on goods purchased within the State, by invoking provision of section 19(4) of the 2006 Act to the extent of rate of tax provided therein, ie., three per cent (which was the rate pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The statutory requirement for claim of ITC is production of proof of purchases by way of original invoices from the selling dealer. In the present case, Mr.Hariharan, learned counsel for the Department, does not dispute the position that the purchasers have duly produced the original invoices from the seller. 6 . In such a circumstance, no reversal is liable to be made, in the absence of any further condition imposed upon the dealer in this regard. 7. A learned Single Judge of this Court in the case of JKM Graphics Solutions Private Limited Vs. Commercial Tax Officer, Vepery Assessment Circle, Chennai, [2017] 99 VST (Mad), has considered an identical challenge raised by several dealers, wherein their claim for Input Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xercise jurisdiction to dispose of the objections, etc. However, this court cannot legislate nor direct the State to legislate in a particular passion and it is for the state to bring about and appropriate rules and set procedures so that when discrepancy is noted while comparing the return with that of the figures available with the Department in their web portal, there should be an exercise carried out by the Department within its level before calling upon the dealer to show cause. This can be achieved only if there is a centralised mechanism and if the present practice is allowed to prevail, it would only result in multiplicity of proceedings with more number of cases pending before the courts and appellate forums, thus jeopardizing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alized mechanism to exclusively deal with the cases of mismatch and while doing so, the Principal Commissioner shall take note of the procedures adopted by the other States, more particularly, in Maharashtra, Gujarat and Delhi and if any statutory amendments have to be made, make appropriate recommendations to the State Government, and till then to devise a procedure which is fair and reasonable and afford an opportunity to the dealer to put forth his case and establish that he is entitled to the concession/set-off availed. Since these writ petitions have been allowed and the impugned orders have been set aside and the matters have been remanded for fresh consideration the petitioners/dealers are not entitled to raise a plea of limitat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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