TaxTMI 
TaxTMI 
2021 (3) TMI 896
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.... Tax Act, 2006 (in short 'TNVAT Act'). The period of assessment is 2011-12. The petitioner was put to notice on 12.09.2012 that its turnover from sale of rice bran oil was less than Rs. 5.00 crores, thus attracting exemption in terms of Entry 65/Schedule A of the Act. Thus, the tax collected on the sales, admittedly remitted to the Department, was proposed to be forfeited in terms of Section 40(2)(ii) and the Input Tax Credit (ITC) claimed, proposed to be reversed, along with penalty. 3. The petitioner filed a reply dated 08.11.2012 stating that its turnover was, in fact, in excess of Rs. 5.00 crores (Rs. 5,18,01,968/- to be exact) and hence it was not entitled to exemption. This culminated in an order dated 15.03.2018, where the stand of ....
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....s. 97,59,386/-, the turnover for the purposes of the TNVAT Act is an amount of Rs. 4,20,42,582/-. The stand of the revenue to the effect that the turnover is less than Rs. 5.00 crores and that the petitioner is eligible to exemption, is thus vindicated. 5. Eligibility, however, does not tantamount to availment, and the question that presents itself is as to whether though eligible, an exemption could be thrust upon an assessee. The provisions of Section 19(5)(a) of the Act state that no ITC shall be allowed in respect of sale of goods exempted under Section 15 of the Act. However, it is for the eligible assessee to exercise such option, and claim exemption. If an assessee chooses not to avail the available exemption, then such option canno....
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....in terms of Section 37B of that enactment. There is not, in my view, any discernible distinction between an exemption offered under Notification (as is the case under Central Excise law) or under the Schedule to the Act (as in the case before me. The crux of the matter remains that the assessee must have freedom to choose whether or not it wishes to avail of the benefit offered. 9. The exemption available under Entry 65/Schedule A is an option that has not been availed by the present petitioner and I see no legal flaw in the choice made. The petitioner will have to sink or sail on the basis of the decision taken by it, qua exemption. In this case, the petitioner has, while eschewing exemption, claimed ITC on purchases. The respondent, whil....
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.... the year falls short of the taxable limit specified, the sum so collected shall be remitted to the Government and forfeited wholly as per Section 41 of the Tamil Nadu Value Added Tax Act, 2006 (Tamil Nadu Act 32 of 2006). Such persons cannot avail the benefit of input tax credit on their purchases. 2. The Government have, therefore, decided to amend the said section 41 of the said Act prospectively i.e. 1st April, 2012 to the effect that the amount collected as tax by any person or registered dealer will be forfeited to the Government after deducting the eligible input tax credit claim, if any, on the corresponding purchases if his turnover for the year falls short of the taxable limit specified under the said Act. 3. The Bill seek....