Madras High Court
M/S. Dhanalaxmi Jewellers vs The Commercial Tax Officer on 4 February, 2025
Author: Anita Sumanth
Bench: Anita Sumanth
W.P. Nos. 14333 to 14335 of 2013
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 04.02.2025
CORAM
THE HON’BLE DR. JUSTICE ANITA SUMANTH
AND
THE HON’BLE MR. JUSTICE C. KUMARAPPAN
W.P. Nos. 14333 to 14335 of 2013
M/s. Dhanalaxmi Jewellers,
rep. by its Proprietor,
Mr. Vinod Kumar Jain,
No. 118, NSC Bose Road,
Chennai – 600 079. ..Petitioner in
all the WPs
Vs.
1. The Commercial Tax Officer, (CT),
Peddunaickenpet (South) Assessment
Circle,
No.191, NSC Bose Road,
Chennai – 1.
2. The Special Commissioner &
Commissioner of Commercial Taxes,
“Ezhilagam”, Chepauk,
Chennai – 600 005.
3. The State of Tamil Nadu,
represented by the Secretary
to Government,
Commercial Taxes and Registration
Department,
Fort St. George, Chennai – 600 009. ..Respondents
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W.P. Nos. 14333 to 14335 of 2013
in all WPs
Prayer in W.P. No. 14333 of 2013: Petition under Article 226 of the
Constitution of India praying for issue of Declaration declaring that Section
19(2)(ii) and Section 19(4) of the Tamil Nadu Value Added Tax Act, 2006
as discriminatory and violative of Article 14, 301 and 304(a) of the
Constitution of India, not saved by Presidential assent under Article 304(b)
of the Constitution of India and, in any view, Section 19(4) of the Tamil
Nadu Value Added Tax Act, 2006 as inapplicable to cases involving stock
transfer of raw materials to a place outside the State for manufacture and
return of manufactured goods into the State for sale within the State of
Tamil Nadu.
Prayer in W.P. No. 14334 & 14335 of 2013: Petitions under Article
226 of the Constitution of India for issue of a Writ of Certiorari to call for
the records on the files of the 1st respondent herein in
TIN.33720281723/2010-11 dated 23.04.2013 and TIN.33720281723/2011-
12 dated 23.04.2013 and quash the same.
For Petitioner :: Ms.C. Rekha Kumari
in all WPs
For Respondents :: Mr.V. Prashanth Kiran
in all WPs Govt. Advocate (Taxes)
COMMON ORDER
(Made by Dr. ANITA SUMANTH,J.)
Both learned counsel would accede to the position that the issue
raised is covered by the decision of the Division Bench of this Court in the
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W.P. Nos. 14333 to 14335 of 2013
case of Patina Gold Ornaments Pvt. Ltd. V. Assistant Commissioner (ct),
Park Road Circle, Erode and Another (2018 (50) GSTR 114). The operative
portion of the judgment is as follows:
...‘The facts which obtain in the present case, clearly, demonstrate,
that ITC is not made available by the respondents, to those assessees
who have had tax suffered raw materials such as bullion and / or worn
out jewellery converted into final products (i.e. jewellery) by having
them manufactured / processed in units situate outside the State of
Tamil Nadu, even though, the final product is sold, upon payment of
tax within the State of Tamil Nadu.
…
Therefore, having regard to the foregoing discussion, we are of the
view that Section 19(2)(ii) of the 2006 Act is invalid to the extent that
it denies availment of ITC in respect of those units which despatch tax
suffered raw materials i.e. bullion / worn-out jewellery for conversion
into final product (i.e. jewellery) outside the State which upon
conversion are received back and sold within the State of Tamil Nadu.
Thus, according to us, the mere fact that the manufacturing unit is
located outside the State of Tamil Nadu, cannot be the basis, for
denial of ITC, under Section 19(1) of the 2006 Act. Clause (ii) of Sub-
Section (2) of Section 19 of the 2006 Act is, thus, declared bad in law.
The writ petition is, thus, allowed in the aforesaid terms, leaving
parties to bear their own costs’
2. In view of the above, the writ petitions are allowed. No costs.
(A.S.M.J.) (C.K.J.)
nv 04.02.2025
To
1. The Commercial Tax Officer, (CT),
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W.P. Nos. 14333 to 14335 of 2013
Peddunaickenpet (South) Assessment
Circle,
No.191, NSC Bose Road,
Chennai – 1.
2. The Special Commissioner &
Commissioner of Commercial Taxes,
“Ezhilagam”, Chepauk,
Chennai – 600 005.
3. The State of Tamil Nadu,
represented by the Secretary
to Government,
Commercial Taxes and Registration
Department,
Fort St. George, Chennai – 600 009.
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W.P. Nos. 14333 to 14335 of 2013
Dr. ANITA SUMANTH,J.
AND
C. KUMARAPPAN,J.
nv
W.P. Nos. 14333 to 14335 of 2013
04.02.2025
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