2020 (4) TMI 141

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....Agencies and in the order impugned, it was held that the assessee, the purchaser is entitled to claim input tax credit under the provisions of Section 19(1) of the Tamil Nadu Value Added Tax Act, 2006 having proved the fact that they have paid the due tax to his selling dealer in view of the proviso to section 19(1) of the Act, as it was stood prior to the amendment, with effect from 29.1.2016, which was substituted by the 2nd Amendment Act 13 of 2015, in Section 19 of the Act. The relevant observations of the learned Single Judge in the order impugned before us are quoted below for ready reference. '7. The provision of section 19(1) clearly states that input tax credit can be claimed by the registered dealer, provided if the registered d....

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....ealer. It is, therefore, for the department to proceed against the selling dealer for recovery of tax in the manner known to law. The provision under which the present action has been initiated, namely invoking sub-section (16) of Section 19, does not appear to be correct on the admitted facts as above. All the revision orders revising the input tax credit on the admitted case of tax having been paid to the selling dealer, therefore, are found to be totally incorrect, erroneous and contrary to the provisions of the TNVAT Act and Rules. As a result, all the orders are liable to be set aside.' 10. For all the above reasons, the impugned orders are set aside and the writ petitions are allowed. ' 2. The assessing authority himself has noted ....

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....ringfor the Revenue feebly tried to submit that in case, the selling dealer does not deposit the due tax with the Treasury or he is non existent dealer, the interest of the Revenue deserves to be safeguarded in this regard and no input tax credit can be allowed unless the selling dealer has deposited the due tax collected from the purchasing dealer with the State Treasury. He also drew the attention of this Court to the amendment in the provisions of Section 19(1) of the TNVAT Act with effect from 29.1.2016 and submitted that, that should be treated as amendment of clarificatory in nature. 5. Learned counsel for the assessee, supporting the impugned order of the learned Single Judge, would submit that in view of the admitted position that ....