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TMI Blog2024 (6) TMI 1242X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the TNVAT Act, 2006 was to be allowed subject to the petitioner complying with the requirements of Section 140 of the TNGST Act, 2017 read with Rule 117 of the TNGST Rules, 2017. The credits that are availed under the provisions of the TNVAT Act, 2006 are indefeasible in nature. In this connection, reliance placed on the decision of the Hon'ble Supreme Court in COLLECTOR OF CENTRAL EXCISE, PUNE VERSUS DAI ICHI KARKARIA LTD. [ 1999 (8) TMI 920 - SUPREME COURT ], wherein, the Hon'ble Supreme Court while dealing with the provisions of the Central Excise Rules, 1944 in the context of CENVAT Credit Rules/MODVAT Credit Rules, held that once the credit is validly availed, it is indefeasible unless provided to lapse under the law and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e dispute has arisen during the first year of implementation of the respective GST enactments with effect from 01.07.2017. The petitioner claims that the petitioner had unutilized the input tax credit under the provisions of the Tamil Nadu Value Added Tax Act, 2006 as on 30.06.2017 being the late date, on which, the said Act was applicable to the petitioner as on the following date, the respective GST enactments were implemented and rolled out. 4. The petitioner claims that it was entitled to transition of input tax credit lying unutilized in its VAT returns as on 30.06.2017 in terms of Section 140 of the respective GST enactments. 5. Instead of filing necessary declaration in Form TRANS-01 as is required under Section 140 of the TNGST Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the petitioner, the learned Deputy Solicitor General of India for the first respondent and the learned Additional Government Pleader for the second to fifth respondents. 10. In my view, the credit that was availed by the petitioner under the provisions of the TNVAT Act, 2006 was to be allowed subject to the petitioner complying with the requirements of Section 140 of the TNGST Act, 2017 read with Rule 117 of the TNGST Rules, 2017. 11. The credits that are availed under the provisions of the TNVAT Act, 2006 are indefeasible in nature. In this connection, I wish to place reliance on the decision of the Hon'ble Supreme Court in Collector of Central Excise, Pune and others Vs. Dai Ichi Karkaria Ltd. and others, 1999 (7) SCC 448 : (1999 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s no corelation of the raw material and the final product; that is to say, it is not as if credit can be taken only on a final product that is manufactured out of the particular raw material to which the credit is related. The credit may be taken against the excise duty on a final product manufactured on the very day that it becomes available.'' 12. Thus, the input tax credit that was availed by the petitioner under the provisions of TNVAT Act, 2006 is indefeasible and if it is not allowed to be utilized for discharging the tax lability under TNGST Act, 2017 or CGST Act, 2017 or IGST Act, 2017, as the case may be, it has to be refunded back unless the provisions itself provide for lapsing of such credits. There are no provisions tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision of the Hon'ble Supreme Court in Commissioner of Sales Tax, Uttar Pradesh Vs. Auriaya Chamber of Commerce, Allahabad, 1986 (3) SCC 50 : (1986) 25 ELT 867, wherein, it has been held that the rules or procedures are hand-maids of justice not its mistress. Relevant paragraph reads as under:- 29. It is true that except special provisions indicated before, there is no specific provision which prescribes a procedure for applying for refund in such a case. But the rules or procedures are handmaids of justice not its mistress. It is apparent in the scheme of the Act that sales tax is leviable only on valid transaction. If excess amount is realised, refund is also contemplated by the scheme of the Act. In this case undoubtedly sales tax on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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