2020 (2) TMI 683

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Section 51 (wrongly mentioned as 52 in the prayer of the Writ Petitions) of the Tamil Nadu Value Added Tax Act, 2006, in respect of appeals filed against the orders in CST 864303/2011-12 & CST 864303/2012-13 dated 29.05.2015. 2.The petitioner wanted to pre-deposit 25% of the tax from and out of Input Tax Credit available with it. The appeals filed by the petitioner were summarily returned with a memo dated 14.08.2015 followed by two notices both dated 21.08.2015 for the respective Assessment Years. 3.It has been stated that as per the decision of this Court in Tvl. KSB Pumbs Ltd. Vs. Deputy Commissioner (CT), Fast Track Assessment Circle - II, Coimbatore, (2014) 68 VST 244 (Mad), the petitioner was required to pre-deposit 25% of the a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....submits that pre-deposit has to be only in cash under Section 51 of the TNVAT Act, 2006. He further submits that as per the decision of this court in Tvl. KSB Pumbs Ltd. Vs. Deputy Commissioner (CT), Fast Track Assessment Circle - II, Coimbatore, (2014) 68 VST 244, pre-deposit cannot be permitted by way of adjustment of the input tax credit lying unutilised. 7.I have considered the arguments advanced on behalf of the petitioner and the respondents. 8.Section 19 (1) permits a registered dealer to avail Input Tax Credit of the tax paid on the input purchased on payment of tax from a registered dealer within the State. As per section 19 (2) of the TNVAT Act, 2006, credit shall be allowed for the purpose specified therein:- Secti....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Authority shall serve Form P upon such dealer. Rule 11 of the aforesaid Rule contemplates the issue of reference of such amounts. 10.Thus, excess Input Tax Credit is to be refunded back if after adjustment there is balance available. Therefore, it is evident that if the amount of credit can be refunded, they can also be adjusted towards pre-deposit of the tax liability for the purpose of Section 51 of the TNVAT Act, 2006. It may be useful to also refer to some of the decisions rendered in the context of Section 35F of the Central Excise Act, 1944. In the context of the aforesaid provision which also contemplats pre-deposit of amount, the Jharkhand High Court, Allahabad High Court, Karnataka High Court and Gujarat High Court have taken a ....