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TMI Blog2024 (12) TMI 268X X X X Extracts X X X X X X X X Extracts X X X X ..... sessed and therefore the accrual of refund of such Input Tax Credit cannot be said to have arisen either on the date of purchase of the inputs or on the date of export that is Zero Rated Sales as defined in Section 2(44) of the Tamil Nadu Value Added Tax Act, 2006 or within 180 days of the actual export during the period in dispute. The export incentives in the form of refund of Input Tax Credit should not be denied and ought not to be denied as export bring precious foreign exchange to the country. These export incentives were conceived of and are being given at the time when the country was facing shortage of foreign currency when foreign exchange reserves were depleted impelling the Parliament as also the State Legislatures to boost exports in a bid to usher the foreign exchange into the country. Question of restrictions if any statutorily can be said to have been put in a place only after 2010 pursuant to amendment to Section 18(3) of the Tamil Nadu Value Added Tax Act, 2006 vide Amendment Act 9 of 2010 with effect from 1st April 2010 as notified by G.O.Ms.No.24AA dated 02.03.2010 and amendment to Rule 11(2) of the Tamil Nadu Value Added Tax Rules, 2007 vide Notification No.SRO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eds the tax liability for that year, it may be adjusted as against any arrears of tax or any other the adjustment, there is still an excess of input tax credit, the officer has to serve a notice in Form P, which is the notice of assessment and refund order, upon the dealer. As far as the present case is concerned, the Revenue does not deny, as a matter of fact, that the petitioner is an 1001 export unit; hence, entitled to claim refund of Input Tax Credit. The only claim of the Revenue herein is that, in so making the claim, the petitioner filed form 'W' as per Rule 11(2), which is a specific provision on a refund claim. A perusal of Rule 11 shown that the officer has to issue the refund of amount as specified in Form P, within ninety days from the days of service of the said Form, failing which, the Officer has to pay the interest at the prescribed rate. As per Sub Rule (2) to Rule 11, the refund claim under Form-W is applicable to cases where a dealer claims refund under Section 18(1) along with copies of invoices of bills of related purchases and the claim should be made within 180 days from the date of accrual of the said claim. As already pointed out, Section 18(1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the provisions of the Act without any delay and on the basis of the procedure given under Section 22 of the Act, it stands to reason that the first respondent should have taken up the said returns for consideration as per Section 22(2), and in that event, the claim of the assessee (a) and (b). In the face of admitted fact as to the filing of Form I remaining undisputed, I do not find any justification in the contention of the respondents herein that Form W filed beyond 180 days resulted in the rejection of the refund claim. In the light of the fact that the provisions on Input Tax Credit is a beneficial contemplate filing of monthly returns and that a claim could be Tax Credit refund claim, the proper course herein for the first respondent would be to take up the assessment expeditiously to consider the claim and pass order accordingly. 10. With the above observation, the writ petitions are allowed and the orders passed rejecting the claim of the petitioner, stands set aside. It is hereby made clear that the claim of the petitioner, hence, has to be worked out in terms of Section 22 of the Act as regards the claim made under Form I connected M.P.Nos.1 and 1 of 2010 stands clo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar that every dealer is entitled to avail Input Tax Credit on purchase of taxable goods specified in first schedule. 16. This is fortified by Section 18(1) of the Tamil Nadu Value Added Tax Act, 2006 although such sales or otherwise exempted from payment of tax. The goods exported are not exempted goods within the meaning of Section 220 of the Act for the purpose of denying Input Tax Credit. 17. Section 18(1) of the Tamil Nadu Value Added Tax Act, 2006 allows a dealer effecting zero rated sale to avail Input Tax Credit or refund of the amount of the tax paid on the purchase of goods specified in the First Schedule in capital goods subject to such restrictions and conditions as may be prescribed. 18. The provisions as it stood during the material period for refund of Input Tax Credit on zero rate sale used the expression accrual of such input tax credit . 19. As per Section 18(3) of the Tamil Nadu Value Added Tax Act, 2006, where the dealer has not adjusted the input tax credit or has not made a claim for refund within a period of one hundred and eighty days from the date of accrual of such input tax credit such credit shall lapse to Government. Thus, refund is from the date of accr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thin ninety days from the date of the receipt of the application in electronic Form W. 23. Thus, as per Section 18(3) of the Tamil Nadu Value Added Tax Act, 2006, a refund claim had to be made within a period of 180 days from the date of accrual of such Input Tax Credit and not from the date of zero rate sales during the period in dispute. 24. Similarly, under Rule 11(2) of the Tamil Nadu Value Added Tax Rules, 2007, as it stood during the period in dispute, a dealer who has effected zero rated sales as is contemplated under Section 18(1) of the Tamil Nadu Value Added Tax Act, 2006 could file a refund claim in electronic form W from accrual of such claim. 25. As per Rule 11(2) of the Tamil Nadu Value Added Tax Rules, 2007 such dealer is entitled to refund of input tax paid or payable on such purchase of those goods which were exported as such or consumed or used in the manufacture of other goods that are exported as specified in sub section (1), subject to such restriction and condition as may be prescribed. 26. The right to file refund claim in FORM W under Rule 11(2) of the Tamil Nadu Value Added Tax Rules, 2007 as extracted above will arise only on an accrual of such Input Tax C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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