TaxTMI 
TaxTMI 
2022 (7) TMI 643
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.... writ petition are as follows: (i) The petitioner was registered as a dealer under the provisions of the Tamil Nadu Value Added Tax Act, 2006 (in short 'TNVAT Act') and Central Sales Tax Act, 1956 (in short 'CST Act'). (ii) The petitioner was being regularly assessed under both TNVAT and CST Acts and for the period 2015-16 had claimed concessional rate of tax at 2% under Section 8(1) of the CST Act. (iii) An audit was conducted by the Enforcement Wing of the Commercial Taxes Department in August 2016, when the petitioner had been unable to substantiate its claim of concessional levy to the fullest extent, as claimed by it. (iv) It thus, deposited an amount of Rs.40,00,000/- towards nonavai....
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....refund and would also miss the bus as far as claiming of the credit was concerned. (xiii) The extension of time granted for filing of TRAN-1 till 27.12.2017 came as a boon for the petitioner which filed a TRAN-1 claiming the refund as credit carried forward. (xiv) The above admittedly, constitutes an inadmissible claim, and there is no doubt either in the Court's mind nor in the mind of the petitioner, in this regard. 3. It is in the aforesaid circumstances that the impugned order has come to be passed by the respondent who, vide a show cause notice, had initially proposed to reject the transition of the ITC and confirmed the proposal holding the petitioner liable to penalty for wrongful transition, ineligible credi....
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....ncorrect, was only done to protect the interests of the petitioner and to save the amount in question from being lost forever. 7. Per contra, Mr.Richardson, learned Additional Government Pleader for the respondents would draw my attention to Section 142(8)(b) of TNGST Act, that reads thus: 142. Miscellaneous transitional provision.- 8. a .... b. Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day under the existing law, any amount of tax, interest, fine or penalty becomes refundable to the taxable person, the same shall be refunded to him in cash under the said law, and the amount rejected, if any, shall not be admissible as input tax credit ....
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....the petitioner correctly as, in the request made for refund dated 19.07.2017, the petitioner states as follows: With reference to the above, refund amount of Rs.38,91,410/- was processed at your end against CST based on the above given assessment order for the year 2015-16 during the month of Feb' 17 and the same is being adjusted by us against CST payment from Feb' 17 till June' 17. An amount of Rs.11,94,312/- is yet to be utilized against the refunded amount. Because of the transition from TNVAT to GST from 1st July' 17, above given unutilized amount cannot be adjusted against GST payment. Hence, we kindly request you to refund the amount as early as possible. 12. The motives of the petitioner are foun....
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....to appreciate how the petitioner is expected to be aware of the technical difficulties faced by the officer or indeed, why such delay should enure to its detriment. 15. The petitioner is entitled to the claim for refund, prima facie, as evidenced by order dated 30.12.2016 of the first respondent wherein the amount in question has been determined as excess payment and there is no dispute raised in this regard. 16. Coming to the imposition of penalty and levy of interest under the impugned order, I am of the view that sustaining the same would be hypertechnical. No doubt, the petitioner has made an inadmissible claim of transition. However, I have noticed earlier that it was a last ditch effort by a desperate assessee and I reiterate th....