Zero-rated sales refund claims cannot be refused merely for delayed Form W filing when monthly returns were filed and merits remain verifiable.

Refund claims arising from zero-rated sales cannot be rejected solely because Form W was filed belatedly or in manual form where the dealer had already filed the prescribed monthly Form I returns. The Court treated the refund mechanism under the Tamil Nadu Value Added Tax Act, 2006 as a beneficial provision and held that the proper course is to examine the admissibility and genuineness of the claim on merits. The impugned orders were set aside and the matter was remitted for fresh verification of the Form I returns and refund eligibility.

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Issues: Whether delay in filing Form W beyond the stipulated period could by itself justify rejection of refund claim arising from zero-rated sales when monthly Form I returns had been filed.

Analysis: Section 18(3) of the Tamil Nadu Value Added Tax Act, 2006 was relied on by the Revenue to contend that input tax credit would lapse if a refund claim was not made within 180 days from the date of zero-rated sale. The Court followed earlier decisions holding that, where the turnover is admittedly export turnover and the dealer has filed monthly Form I returns, the refund claim cannot be rejected merely because Form W was filed belatedly or in manual form. The statutory refund mechanism was treated as a beneficial provision, and the proper course was to examine the admissibility and genuineness of the claim on merits.

Conclusion: The delay in filing Form W did not by itself bar consideration of the refund claim. The impugned orders were set aside and the matter was remitted for verification of Form I returns and refund eligibility.

Final Conclusion: The refund claims were required to be reconsidered on merits, and the writ petitions succeeded with a remand for fresh verification by the assessing authority.

Ratio Decidendi: A refund claim arising from zero-rated sales cannot be rejected solely on the ground of delayed filing of Form W where the dealer has otherwise filed the prescribed monthly returns and the claim is capable of verification on merits.

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