Input tax credit reversal under Tamil Nadu VAT law held unsustainable following binding Division Bench precedent.

Reversal of input tax credit under Section 19(2)(v) of the Tamil Nadu Value Added Tax Act, 2006 was held unsustainable because the issue had already been settled by a recent Division Bench decision in favour of the assessee. The assessment on this point therefore failed, and the assessee succeeded on the credit reversal issue.

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Issues: Whether reversal of input tax credit under Section 19(2)(v) of the Tamil Nadu Value Added Tax Act, 2006 was sustainable.

Analysis: The impugned assessment related to reversal of input tax credit under Section 19(2)(v) of the Tamil Nadu Value Added Tax Act, 2006. The issue was treated as already settled by a recent Division Bench decision, which had decided the question in favour of the assessee.

Conclusion: The reversal of input tax credit under Section 19(2)(v) was not sustainable and the assessee succeeded on this issue.

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