Input tax credit cannot be reused for appeal pre-deposit once adjusted against later tax liability, Madras HC said.

Input tax credit already adjusted against later tax liability cannot be reused to satisfy the 25% pre-deposit required for an appeal under the Tamil Nadu VAT Act. The Madras HC noted that, because the credited amount had been absorbed in succeeding years, no balance remained in the input tax credit account for adjustment against the statutory pre-deposit. The request to compel numbering of the appeal on that basis was therefore without merit, and the writ petition failed.

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Issues: Whether the petitioner could seek adjustment of alleged input tax credit towards the 25% pre-deposit required for the appeal under Section 51 of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The adjustment claimed by the petitioner was not available, as the credited amount had already been adjusted against tax liability in succeeding years. On that footing, no amount remained available in the petitioner's input tax credit account for use as pre-deposit. The petitioner's request to compel numbering of the appeal on the basis of such adjustment therefore lacked merit.

Conclusion: The claim for adjustment towards pre-deposit was rejected, and the writ petition failed.

Ratio Decidendi: Where input tax credit has already been adjusted against later tax liability, nothing survives for adjustment towards statutory pre-deposit in appeal.

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