2007 (8) TMI 659

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....der of the respondent dated June 6, 2007. The petitioner is a registered dealer under the Tamil Nadu Value Added Tax Act, 2006 and an assessee on the file of the respondent and reported Rs. 12,96,478.98 being closing stock value and a consequent input tax credit amount of Rs. 1,60,709.76 reported to the respondent for availing input credit. The respondent granted credit only to the tune of Rs. ....

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....the entire tax amount to the department on the entire closing stock value even before sale was effected in the State of Tamil Nadu. The assessing officer considered the objection of the dealer dated May 30, 2007 with reference to the statutory provision and ordered as follows: "Section 19(5)(b) of the Tamil Nadu Value Added Tax Act, 2006 states that 'no input tax credit shall be allowed ....

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....etitioner referring to rule 10(3)(b)(iv) of the Tamil Nadu Value Added Tax Rules, 2007 submitted that since the petitioner had already paid the local tax on entire value of stocks, the impugned order is liable to be set aside. Rule 10(3)(b)(iv) of the Tamil Nadu Value Added Tax Rules, 2007, reads as follows: "Where any tax is paid on any goods at the point of purchase by the dealer himself, suc....

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.... be eligible for claiming input tax credit." The contention of the petitioner cannot be countenanced in law in view of the specific provision under section 19(5)(b) of the Act. Rule 10(3)(b)(i) refers to the purchase of goods other than capital goods, which have been effected on the first seller in the State and therefore, rule has to be read as a whole and 10(3)(b)(iv) cannot be read in isolat....