Procedural delay in Form-W filing cannot defeat refund of accumulated input tax credit for zero-rated sales.

Belated filing of Form-W under the TNVAT regime did not defeat a refund claim for accumulated input tax credit arising from zero-rated sales where entitlement to the credit itself was undisputed. The time-limit principle applicable to utilisation of input tax credit as a set-off against output tax liability was treated as inapplicable to a refund claim based on an established substantive entitlement. The delay was characterised as a procedural lapse that did not affect the underlying tax liability or the refund right, and the refund was held admissible.

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Issues: Whether belated filing of Form-W beyond the prescribed period barred refund of accumulated input tax credit claimed in respect of zero-rated sales under the TNVAT regime.

Analysis: The claim related not to availment of input tax credit as a set-off against output tax liability, but to refund of accumulated credit where entitlement to the credit itself was undisputed. The delay in filing Form-W was only a procedural lapse. The strict time-limit principle applied to claims for utilisation of input tax credit under the statutory scheme dealing with set-off and quantification of tax liability, but not to a refund claim where the substantive entitlement was already established. In those circumstances, the belated filing did not defeat the refund claim.

Conclusion: The belated filing of Form-W did not bar the refund claim, and the refund was held admissible in favour of the assessee.

Final Conclusion: The writ petition succeeded, and the assessee's refund claim was directed to be granted.

Ratio Decidendi: A procedural delay in filing the refund form cannot defeat a substantive claim for refund of accumulated input tax credit where entitlement to the credit is undisputed and the delay does not affect the underlying tax liability.

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