Input credit is disallowed by th Asst Commissioner

[MUNIRAJ SRINIVASAN]

 

My client has running  the trading unit in madurai ,  during the month of March 2013 he  is having input credit Tax (ITC) value of  Rupees 1,12,000 out put Tax is 1,18,300 balance tax he had deposited to the department but Asst commission has refused his input  Tax credit and , Asst wants to collect input  Tax credit payment of Rs., 112000 weather  dealer  is eligible to take Input tax credit or he has to pay ?

If is credit is allowing any case law is there in Tamil Nadu VAT ?

[Mritunjay Kumar]

Yes, when the credit is available, the assessee is very much eligible to avail the benefit of Rs. 1,12, 000/- . But, as the question is put by you, it seems incomplete. You have not mentioned the reason(s) given by the Assistant Commissioner for denial of benefit of credit.

[DR.MARIAPPAN GOVINDARAJAN]

The contents of Shri Mritunjah Kumar is correct.   The query is incomplete.   Whether the input tax credit is in accordance with the TN VAT Act?  Another point is as pointed out by learned friend what are the reasons adduced by the Assistant Commissioner in rejecting the input tax credit.  The querist is to give detailed version of query.

AI Summary

Input tax credit eligibility depends on statutory compliance and the reasons given for administrative denial. A Madurai trading dealer claimed an input tax credit for March 2013 which the Assistant Commissioner refused, seeking recovery. Advisers state entitlement turns on compliance with the Tamil Nadu VAT Act and the specific reasons for denial; if statutory conditions are satisfied the dealer may be eligible for the credit, but the query lacks necessary factual and documentary detail to reach a definitive legal conclusion.