Madras High Court
The Assistant Commissioner (Ct) vs M/S. Hinduja Foundries Limited on 29 November, 2021
WA No. 1653 of 2017
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated : 29.11.2021
CORAM :
THE HONOURABLE MR. JUSTICE R. MAHADEVAN
and
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
Writ Appeal No. 1653 of 2017
and
CMP.No.21412 of 2017
The Assistant Commissioner (CT)
Manali Assessment Circle
5/79, 1st and 2nd floor
V Cross Street, K.K.D. Nagar
Kodungaiyur
Chennai - 600 118 .. Appellant
Versus
M/s. Hinduja Foundries Limited
rep. by its Authorised Signatory
S. Ramachandran
Kathivakkam High Road
Ennore, Chennai - 600 057 .. Respondent
Appeal filed under Clause 15 of the Letters Patent praying to set aside
the order dated 08.06.2017 passed in WP No. 9744 of 2016 on the file of this
Court.
For Appellant : Mr. Haja Nazurudeen
Additional Advocate General
assisted by Mr. M. Venkateswaran
Special Government Pleader (Tax)
For Respondent : Mr. R. Raghavan
https://www.mhc.tn.gov.in/judis
1/1
WA No. 1653 of 2017
JUDGMENT
(Judgment of the Court was delivered by R. Mahadevan, J)
Heard both sides and perused the materials placed before this court.
2.The appellant has come forward with this intra-court appeal assailing
the order dated 08.06.2017 passed by this court in WP No. 9744 of 2016.
3.The respondent / assessee is a registered dealer under the Tamil Nadu
Value Added Tax (TNVAT) Act, 2006 and the Central Sales Tax Act, 1956 on
the file of the appellant. For the assessment year 2014-15, they filed their
return. Upon scrutiny of the same, it was found that they have effected inter-
state sales to the registered dealers to the tune of Rs.250,64,13,481/- under sub
section (1) of section 8 of the CST Act, 1956, but not effected reversal of Input
Tax Credit under Section 19(2)(v) of the TNVAT Act. According to the
appellant, the dealer is eligible for Input Tax Credit only in excess of 3% as per
the amended provisions of Section 19 (2) (v) and they are not eligible for Input
Tax Credit without 'C' forms as per Section 19 (5) (c). Therefore, a notice dated
02.02.2016 came to be issued, proposing to reverse the Input Tax Credit and
called upon the respondent / assessee to submit their objections.
https://www.mhc.tn.gov.in/judis
WA No. 1653 of 2017
4.Challenging the notice dated 02.02.2016, the respondent / assessee has
filed a writ petition viz., WP.No.9744 of 2016 praying to issue a Writ of
Prohibition, prohibiting the respondent not to proceed further in respect of the
notice dated 02.02.2016 insofar as it proposes to reverse the Input Tax Credit
of Rs.3,33,75,199/- relating to proviso of Section 19(2) of the TNVAT Act,
2006.
5.After having observed that the writ petition was filed only against the
notice and the respondent / assesee can always file their objections before the
Assessing officer, the learned single Judge, by order dated 08.06.2017, has
disposed of the said writ petition, granting two weeks time to the respondent /
assessee to file their objections and further directing the assessing officer to
pass appropriate orders, insofar as the issue of ITC reversal under section
19(2)(v) of the Act within a period of two weeks thereafter. Feeling aggrieved,
the Revenue has come up with this writ appeal.
6.During the course of argument, it was brought to the notice of this
court that subsequent to the disposal of the writ petition, the
respondent/assessee has submitted their objections to the notice dated
02.02.2016 issued by the appellant / Revenue, proposing to reverse the Input
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WA No. 1653 of 2017
Tax Credit and now, it is for the Assessing Officer to consider the same and
pass appropriate orders.
7.In view of the above, we are of the opinion that no further adjudication
is necessary in this writ appeal, except directing the Assessing Officer to pass
final order, after considering the objections filed by the respondent/ assessee,
as expeditiously as possible.
8.With the aforesaid direction, this writ appeal is dismissed. No costs.
Consequently, connected miscellaneous petition is closed.
(R.M.D., J.) (M.S.Q., J.)
29.11.2021
Index : Yes / No
Internet : Yes / No
rsh
To
The Assistant Commissioner (CT)
Manali Assessment Circle
5/79, 1st and 2nd floor
V Cross Street, K.K.D. Nagar
Kodungaiyur
Chennai - 600 118
https://www.mhc.tn.gov.in/judis
WA No. 1653 of 2017
R. MAHADEVAN, J
and
MOHAMMED SHAFFIQ , J
rsh
WA No. 1653 of 2017
29.11.2021
https://www.mhc.tn.gov.in/judis
