TNVAT ITC reversal for manufacturer - Stay by High Court

[venkat eswaran]

Dear All,

We heard today[ 1.3.14] that Madras high court has given stay order for TNVAT ITC reversal for manufacuting industries. for the writ petition filed by Mannufacturing inds in Tamil nadu.

Is it correct? pl share your views.

if it is true how can we reverse for ITC reversal already done for 3 months, Nov, Dec, & Jan-14

Thanks 

Venkat

[DR.MARIAPPAN GOVINDARAJAN]

Dear Sir,

I have not heard such stay order of Madras High Court.   I also contacted the Advocates who practiced in VAT cases in this regard but they did not able to say anything.   If the name of the party is known they may inquire it.   If such order is made known to me I will inform the same to you.

Regards,

M. Govindarajan

[venkat eswaran]

Dear sir/ madam,

The case filed by TVS group ie, LUCAS TVS, & Delphi TVS. and got stay i heard

Venkat

AI Summary

VAT input tax credit reversal stay may suspend manufacturers' obligation to reverse ITC pending resolution of writ petitions. A stay has been reported against enforcement of VAT input tax credit reversals for manufacturers pending writ petitions challenging the reversal obligation. Forum responses conflict: one practitioner could not confirm any stay, while another participant reported writ petitions by major manufacturers and a stay purportedly granted. The practical question is whether taxpayers who already reversed ITC for recent periods must unwind those entries; the summary stresses the need for authoritative confirmation before taking reversal or restoration steps.