Mandatory time limit for input tax credit under Tamil Nadu VAT leads to forfeiture on non-compliance

The Tamil Nadu VAT input tax credit time limit was treated as a mandatory pre-condition that had to be strictly complied with. The binding Division Bench ruling held that failure to claim credit within the prescribed period results in forfeiture of the concession itself. Applying that ratio, the challenge to the assessment order could not succeed and the writ petition was dismissed, leaving the assessment undisturbed.

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Issues: Whether the writ petition challenging the assessment order could be allowed when the dispute was covered by the binding precedent on the mandatory nature of the time limit for availing input tax credit under the Tamil Nadu VAT regime.

Analysis: The binding Division Bench ruling had held that the time frame prescribed for availing input tax credit is a pre-condition, must be strictly complied with, and is mandatory in character. It further held that contravention of the provision results in forfeiture of the concession of input tax credit. Following that ratio, the challenge to the assessment order could not succeed.

Conclusion: The writ petition was dismissed and the assessment order was left undisturbed.

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