2020 (3) TMI 482

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...., 2006 for an amount of Rs. 1,35,719/-as detailed below:- 3.To a notice issued accordingly, the dealers have not filed any reply so far, which shows that they have none to offer. Therefore, based on the available records and facts of the case, the proposal is confirmed and ITC reversed under Section 19(5)(c) & 19(2)(v) of the TNVAT Act, 2006 for the year 2013-14 as follows:-   ITC Reversal 19[5][c] Rs. 19[2][v] Rs. Total Rs. Due 1,145/- 1,35,719/- 1,36,864/- Paid/Reversed Nil Nil Nil Balance 1,145/- 1,35,719/- 1,36,864/- 3.The operative portion of the impugned order reads as under:- 3.As per the amended provision made under Section 19(2)(v) of the TNVAT Act, a dealer who effects interstate sales under S....

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....tate sales under Section 8(2) of the Central Sales Tax Act, 1956 and therefore under the provisions of Section 19(2)(v) of TNVAT Act, 2006 as it stood during the material period, the petitioner was eligible to restricted ITC. In other words, it is the contention of the commercial tax department that the petitioner was eligible for ITC only in excess of 3% of Central Sales Tax under Section 8(1) of Central Sales Tax Act, 1956 on the inputs locally purchased by the petitioner. 5.It is the contention of the learned counsel for the petitioner that the petitioner was entitled to avail input tax credit (ITC) under Section 19(1) of the TNVAT Act, 2006 for the purposes enumerated in Section 19(2) of the said Act without any limitation. It is submi....

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.... trade or commerce falling under sub-section (1) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956); vi.sale in the course of inter-State trade or commerce falling under sub-section (1) and (2) of section 8 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) vii.Agency transactions by the principal within the State in the manner as may be prescribed. Provided that Input Tax Credit shall be allowed in excess of three per cent of tax for the purpose specified in clause (v). 10.The above proviso to Section 19(2) of the Act was inserted into the statute vide Amendment Act No.20/08/2013 and gazetted and notified vide Government Order (G.O).Ms.No.139 dated 08.11.2013. The above proviso was brought into force w....