Form-W refund claims for export-related input tax credit must be examined on merits despite delayed presentation.

Form-W refund claims for input tax credit under the Tamil Nadu Value Added Tax Act, 2006 could not be rejected merely for delay where the claims related to zero-rated export turnover and had otherwise been reflected in the statutory returns. Section 18(3) and Rule 11 were applied on the basis that input tax credit provisions are beneficial in nature, and the refund request had to be examined in accordance with law rather than returned on limitation alone. The petitioners were to re-present Form-W, and the respondent was to give a hearing and decide the refund claims on merits.

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Issues: Whether the respondent was justified in returning the petitioners' Form-W applications seeking refund of Input Tax Credit on the ground of delay, and whether the refund claims had to be considered on merits.

Analysis: The challenge concerned refund claims arising from export sales under the Tamil Nadu Value Added Tax Act, 2006. Section 18(3) deals with lapse of unadjusted input tax credit and Rule 11 prescribes the manner of refund. The Court followed the earlier decision which held that, in the case of zero-rated export turnover, the refund claim could not be rejected merely because Form-W was presented beyond 180 days, especially when the claim had otherwise been made in the statutory returns and the input tax credit provisions were beneficial in nature. The proper course was to consider the application in accordance with law after affording an opportunity of hearing.

Conclusion: The return of Form-W on the ground of limitation was not sustained. The petitioners were directed to re-present Form-W, and the respondent was directed to hear them and pass orders on merits in accordance with law.

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