2021 (4) TMI 125

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....66/- on deemed assessment basis under Section 22(2) of the TNVAT Act, 2006. Subsequently, the respondent issued a pre-revision notice dated 16.07.2014. In the said notice, two allegations have been made against the petitioner. The first allegation is that the petitioner had omitted to report the purchase value of Rs. 7,39,829/-. The other major allegation is that there has been a wrong availing of input tax credit. In response to the said notice, the petitioner submitted his explanation dated 18.09.2014. The respondent was not satisfied with the petitioner's explanation and confirmed the proposal set out in the notice and directed the petitioner to pay the balance tax amount of Rs. 21,02,363/- together with penalty to the tune of Rs. 4....

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....But this is only a minor part of the story. The major aspect revolves around the alleged wrongful availment of input tax credit. 6.The contention of the department is that the petitioner who is a dealer in cements and who availed trade discount from the manufacturer, did not adhere to the parameters laid down in Section 19(20) of TNVAT Act, 2006 r/w Rule 10(6)(b)(ii)(c) of TNVAT Rules,2006. In the impugned order, by way of sample, it is pointed out that the petitioner after purchasing to the tune of 200 bags of cement at the cost of Rs. 66,000/-, chose to sell the same for a lesser price of Rs. 64,051/-. In the impugned order, the invoice particulars have not been mentioned. But the petitioner's counsel in his typed set, has enclosed t....

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...." 10.These provisions were recently applied by the Madras High Court in W.P.No.37775 of 2015 (Kun Motor Company Pvt. Ltd., Vs. The Assistant Commissioner (CT), Chennai) dated 20.01.2020. The learned Judge held as follows:- "8.The learned counsel for the Petitioner submits that the above clarification is inspired from the decision of Hon'ble Supreme Court in the case of Neyveli Lignite Corporation Limited Vs Commercial Tax Officer, in W.P.No.37775 of 2015 Cuddalore and another, 124 STC 586 (SCC) wherein the Hon'ble Supreme Court following its earlier decision rendered in the case of State of Tamil Nadu Vs Kothari Sugars & Chemicals Ltd., 1996 101 STC 197 wherein in paragraph 19 & 20 which was held as follows:- "19. What transpir....

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....e learned Solicitor-General before us, namely, that the sale price which has been fixed by the Fertiliser (Control) Order is the only obligation of the purchaser under the agreement to pay the same and no other amount including subsidy could be included in the purchase price. In E.I.D. Parry (2000) 117 STC 457 (SC); (2000) 2 SCC 321, however, the court came to the conclusion that the aforesaid principle was not applicable because the planting subsidy was given to the cane growers as the time of delivery of sugarcane by them. "The planting subsidy was given by the appellants to the cane growers not by way of agrarian reforms or a social welfare http://www.judis.nic.in measure. The appellants had given planting subsidy as purchasers of suga....