Input-tax credit refund for zero-rated sales cannot be denied solely for late Form W filing when the claim was timely disclosed in returns.

Input-tax credit refund for zero-rated sales under the Tamil Nadu VAT framework could not be denied solely because Form W was filed after the 180-day period where the dealer had already disclosed and claimed the credit in monthly returns filed on time. The Madras HC noted that sections 18 and 19 of the Act, read with rule 10(10)(a) and (b), recognise ITC and refund entitlement, and that the assessee's monthly Form I returns had not been rejected. Because the claim remained pending for assessment under section 22, the beneficial nature of the provisions required the authorities to consider the refund on the basis of the timely returns. Delayed filing of the prescribed refund form, by itself, was insufficient to defeat the claim.

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Issues: Whether refund of input-tax credit relating to zero-rated export sales could be denied merely because Form W was filed beyond 180 days, when the dealer had already disclosed and claimed the credit in monthly returns filed in time.

Analysis: The statutory scheme under section 18 and section 19 of the Tamil Nadu Value Added Tax Act, 2006, together with rule 10(10)(a) and (b) of the Tamil Nadu Value Added Tax Rules, 2007, recognises input-tax credit and refund in respect of zero-rated sales. The Court noted that the dealer had continuously claimed the credit in monthly returns in Form I and that those returns were not rejected. It further held that the beneficial nature of input-tax credit provisions required the authorities to consider the claim on the basis of the returns already filed. The belated filing of Form W could not, by itself, defeat a refund claim that had otherwise been timely disclosed and remained pending for assessment under section 22.

Conclusion: The rejection of refund solely on the ground of delayed Form W was unsustainable, and the assessee was entitled to consideration of the claim on the basis of the monthly returns.

Ratio Decidendi: A refund claim for input-tax credit in respect of zero-rated sales cannot be rejected merely for late filing of the prescribed refund form if the claim was already made in timely monthly returns and remains to be considered in assessment.

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