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

The mandatory time limit for availing input tax credit under the Tamil Nadu VAT Act is a pre-condition to the concession and must be strictly complied with. An earlier Division Bench ruling treated the limitation as protective of revenue and held that failure to comply results in forfeiture of the benefit. On that basis, a writ petition challenging the assessment order denying input tax credit could not be entertained and was dismissed.

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Issues: Whether the writ petition challenging the assessment order could be entertained in view of the binding decision on the mandatory nature of the time limit for availing input tax credit under Section 19(11) of the Tamil Nadu VAT Act.

Analysis: The challenge was placed against an assessment order relating to denial of input tax credit. The matter was covered by an earlier Division Bench ruling which held that the statutory time frame for availing input tax credit is a pre-condition for the concession, must be strictly complied with, and is intended to protect revenue interests. The provision was treated as mandatory, and non-compliance was held to result in forfeiture of the benefit.

Conclusion: The writ petition was rejected and dismissed.

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