Input tax credit disallowance on cancelled dealer registrations requires fresh consideration after furnishing cancellation orders and hearing the taxpayer.

Assessment orders disallowing input tax credit on purchases from dealers whose registrations had been cancelled were set aside because the cancellation orders had not been furnished to the buyer. The Court held that the matter required fresh consideration after supplying the cancellation orders and giving the taxpayer an opportunity to file a fresh or additional reply. The Assessing Officer was also directed to consider the Division Bench ruling in Tvl. Sahyadri Industries Ltd. while passing a fresh order on merits.

---

---

Issues: Whether the assessment orders passed under Section 27 of the Tamil Nadu Value Added Tax Act, 2006, disallowing input tax credit under Section 19 of the Tamil Nadu Value Added Tax Act, 2006, were liable to be quashed and the matters remitted for fresh consideration after furnishing copies of the cancellation orders of the selling dealers.

Analysis: The challenge concerned assessments made on the footing that input tax credit had been availed from dealers whose registrations stood cancelled. The petitioner contended that the cancellation was retrospective and that the actual cancellation orders had not been supplied. The Court found that the impugned orders required reconsideration after furnishing the cancellation orders and giving the petitioner an opportunity to file a fresh or additional reply. The Court also directed the Assessing Officer to consider the decision of the Division Bench in Tvl. Sahyadri Industries Ltd. while passing fresh orders on merits.

Conclusion: The assessment orders were quashed and the matters were remitted for fresh adjudication after furnishing the cancellation orders and considering the petitioner's further reply.

---