TaxTMI 
TaxTMI 
2018 (2) TMI 199
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....ain Bench), Chennai, which has been dismissed. 4. Tax Case Revision is filed on the following grounds:- "1) Recording of the fact, by the Tribunal at page 5 (para-2, line-12) that the seller is still active in the office of Assistant Commissioner (CT), Anna Salai-III Assessment Circle, is factually incorrect as the seller Tvl. Insulation House, is a registered dealer in Chintadripet Assessment Circle, with effect from 01.04.2004 and Registration cancelled, with effect from 15.04.2011. 2) Observation of the Tribunal that the "Assessing Officer has not made any attempt to cross verify TIN of their seller, who is also an assessee, in the same Assessment Circle" (Para-2, Page-5 - Lines:13 to 15), is also factually incorrect. 3) That Section 17 referred to by the Tribunal, at Page:5, is not relevant to this case, as the question for discussion was about the reversal of ITC, and not about any transaction, that are liable to tax or not. 4) That section 19(19) referred by Hon'ble Tribunla at page:5, is totally irrelevant to this case, as the dealer has not declared any closure of business. 5) That the decision relied, in the case of Suresh Trading Corporation (109 STC 439), ....
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..... Under the Value Added Tax Act, the tax is payable at every point of sale on value addition. The Act also provides for the set off of the tax if it has been paid or payable by the selling dealer. The said amount of tax can be adjusted or set off by way of Input Tax Credit from the tax which is payable by the purchasing dealer on its subsequent sale. Section 2(24) defines the term "Input Tax" which means that: (24) "Input tax" means the tax paid or payable under this Act by a registered dealer to another registered dealer on the purchase of goods including capital goods in the course of this business; Section 19(1) of the Tamil Nadu Value Added Tax Act '2006 provides for a availment of Input Tax Credit (ITC) accrued on purchases made against Out Put Tax due on sales by a registered dealer. Thus Section 19(1) contemplates exemption from payment of taxes due on sales to the extent of Input Tax Credit accrued on purchases. In the revisional order, the Assessing Officer had denied the Input Tax Credit claimed by the respondent / dealer on goods purchased from Tvl.Insulation House, Chennai - 2 on the ground that the registration the selling dealer was invalid. In fact, the....
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.... the seller; (iv) The name, address and the taxpayer identification number of the buyer; (v) The description of the goods; (vi The quantity of volume of the goods; (vii) The value of the goods (viii) The rate and amount of tax charged; and (ix) The total value of the goods." 10. Going by the above said rule and read along with section 19(1) of the Tamil Nadu Value Added Tax Act, it is clear that so long as the purchasing dealer has complied with the requirements as given under rule 10(2), the claim of the purchasing dealer cannot, by any length of reasoning, be denied by the Revenue. The mere fact that the Revenue had not made an assessment on the assessee's vendor, per se, cannot stand in the way of the Assessing Officer considering the claim of the assessee under Section 19 of the Tamil Nadu Value Added Tax Act. Going by section 17 of the Tamil Nadu Value Added Tax Act that the burden on the purchasing dealer rest to the extent of showing that he is not liable to tax under the Act and read in the context of the fact that the assessee had given his sellers' TIN number and had also produced the invoices evi....
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....at the time of filing the self - assessment return Section 22(2), the petitioner - dealer had followed rule 10(2) of the Tamil Nadu Value Added Tax Rules, 2007 and therefore, could not be said to have wrongly availed of input tax credit wrongly. Section 19(1) states that input tax credit can be claimed by a registered dealer, if he establishes that the tax due on such purchase has been paid by him in the manner prescribed and that was accepted at the time when the self-assessment was made. The pre-revision notices and the orders clearly stated that the petitioner-dealer had paid the tax to the selling dealer. If that be the case, the petitioner's case squarely fell under the proviso to section 19(1) of the Act. It was another matter that the selling dealer had not paid collected tax. The liability had to be fastened on the selling dealer and not on the petitioner-dealer which had shown proof of payment of tax on purchases made. The orders were liable to be set aside." 12. Similarly, the Hon'ble High Court of Madras in the case of Althaf Shoes (P) Ltd. v. Assistant Commissioner (CT) Valluvarkottam Assessment Circle, Chennai reported in 50 VST 179 wherein it was held that 1....