2016 (8) TMI 803

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ered dealer under the Tamil Nadu Value Added Tax Act, (TNVAT Act) and the Central Sales Act (CST Act). In these writ petitions, the petitioner has challenged the impugned orders of assessment which are the revised assessment passed under Section 27(1) and (2) of the TNVAT Act for the assessment years 2007-08 to 2009-10. The only reason for revising the ITC is on the ground that the petitioner has effected purchase from the registration cancelled dealers. 3.It cannot be disputed by the learned Additional Government Pleader that an identical issue was considered in a batch of cases in the case in M/s.Jinsasan Distributors vs. Commercial Tax Officer (CT), Chintadripet Assessment Circle, Chennai reported in (2013) 59 VST 256 (Mad), wherein the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ise not taxable. The condition precedent for becoming entitled to make a tax-free resale was the purchase of the goods which were resold from a registered dealer and the obtaining from that registered dealer of a certificate in this behalf. This condition having been fulfilled, the right of the purchasing dealer to make a tax-free sale accrued to him. Thereafter to hold, by reason of something that had happened subsequent to the date of the purchase, namely, the cancellation of the selling dealer's registration with retrospective effect, that the tax-free resales had become liable to tax, would be tantamount to levying tax on the resales with retrospective effect. 5.In our view, the High Court was right. A purchasing dealer is entitle....