Input tax credit reversal on Form F stock transfers remitted for reconsideration after a later VAT amendment

Input tax credit reversal on stock transfers covered by Form F was challenged in light of a later amendment to the Tamil Nadu Value Added Tax Act, 2006. The amendment introduced by G.O.(Ms) No. 18 dated 29.01.2016 created a separate column in Annexure 12 for stock transfer and consignment sales without Form F under Section 19(2). Because the assessing authority did not consider this amendment while issuing the orders, the court interfered only on the Form F stock transfer issue and remitted that aspect for fresh consideration in accordance with the amended position.

---

---

Issues: Whether the assessment orders reversing input tax credit for stock transfer covered by Form F required interference in view of the subsequent amendment to the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The dispute concerned reversal of input tax credit on stock transfer under Form F for the assessment years in question. A later amendment introduced by G.O.(Ms) No. 18 dated 29.01.2016 provided a separate column in Annexure 12 for stock transfer/consignment sales without Form F under Section 19(2). The amendment was relevant to the controversy, and the assessment authority had not considered it while passing the impugned orders.

Conclusion: The assessment orders were interfered with to the limited extent of the reversal of input tax credit for stock transfer covered by Form F, and that issue was remitted to the Assessing Officer for fresh consideration in the light of the amendment.

---