2015 (10) TMI 1730

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.....Ramani, learned Senior Counsel appearing for the appellants. Mr.V.Haribabu, learned Additional Government Pleader (Taxes) takes notice for the respondent. 3. On 8.1.2015, the respondent issued individual notices to the appellants proposing to reverse the input tax credit on the trade discounts and other discounts received by the appellants. Thereafter, the respondent issued a notice dated 23.2.2015 calling upon the appellants to appear in person for an enquiry with a list of documents indicated in the notices. Accordingly, the appellants appeared and produced documents. 4. Thereafter, the respondent passed separate orders dated 28.5.2015, 25.5.2015 and 21.5.2015 respectively against the appellants in the above appeals. Challenging th....

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....ured by verifying the purchase and sale price per unit. 3. If the above two things are found in a business concern, the quantum of ITC which exceeds the output tax shall be reversed." 8. Therefore, based upon the orders passed by the High Court on 17.7.2013 in a batch of writ petitions upholding the Constitutional validity of Section 19(20) and also based upon the representations of the association of manufacturers and traders, the Commissioner has directed in his circular that the provisions of Section 19(20) have nothing to do with the levy of tax on the discount, which has to be dealt with independently as per the provisions of the Act. 9. It appears that following the above circular, one of the sister companies of the appellant....