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D. KRISHNAKUMAR, R. VIJAYAKUMAR
Thillai Agencies, Represented by its partner, S. Rajkumar, Virudhunagar – Appellant
Versus
State of Tamil Nadu, Represented by The Secretary to Government, Chennai – Respondent
JUDGMENT
(Prayer: Writ Petition has been filed under Article 226 of Constitution of India to issue a writ of Declaration, declaring that Section 19(15) of Tamil Nadu Value Added Tax Act 2006 as unconstitutional and enforceable.)
R. VIijaykumar, J.
1. The present writ petition has been filed by a registered dealer under Tamil Nadu Value Added Tax 2006 challenging Section 19(15) of Tamil Nadu Value Added Tax 2006 as unconstitutional and unenforceable.
2. The facts leading to the filing of the writ petition are as follows:
(i) The petitioner is a registered dealer in mobile phones and he effected purchase of Nokia Mobile Phones from an authorised whole sale dealer namely M/s.Smart Trading Company, Madurai in September 2008. The petitioner had filed monthly returns in Form-I in the month of September for the assessment year 2008-2009 and claimed input tax credit for the purchase made during the relevant month.
(ii) On 11.03.2009, the third respondent had issued a notice proposing to reverse the Input Tax Credit claimed by the petitioner to the tune of Rs.1,04,673/- for the month of September 2008 on the ground that the registration of the selling dealer was already cancelled. According to th
Strict compliance with statutory conditions for availing concessions and benefits under the Act.
Non-compliance with Rule 38 of the Rules of 2006 can lead to the disallowance of input tax credit under Section 18 of the Act of 2003.
The claim of Input Tax Credit cannot be sustained when the selling dealer has not paid the tax to the Government despite collecting it from the purchasing dealer.
Input Tax Credit under GST is a concession, not an absolute right, subject to conditions including actual tax payment by suppliers and adherence to filing deadlines.
The court held that input tax credit cannot be denied based on the seller's retrospective registration cancellation when the transaction occurred while the seller was registered.
Input Tax Credit under GST is a conditional right, contingent on actual tax payment by suppliers, and Sections 16(2)(c) and 16(4) are constitutionally valid restricting eligibility based on complianc....
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