M/S.Sri Laxmi Exports vs. The Assistant Commissioner (CT

Held

The Court held that the 180-day period prescribed under Section 18(3) of the Tamil Nadu Value Added Tax Act, 2006, for filing a claim for refund of input tax credit on zero-rated sales is directory and not mandatory. The Court reasoned that the petitioner's monthly returns, filed in Form-I with Annexure-4, already contained all necessary particulars regarding zero-rated sales. These returns were available to the Assessing Authority on a monthly basis. The Court viewed Form-W as a procedural convenience for the authority to receive a consolidated statement of claims. Therefore, the failure to file Form-W within the 180-day period should not lead to the lapse of the credit to the government, especially when the classification of transactions as zero-rated sales was not disputed. The Court found support for its conclusion in the decision of Sara Leathers Vs. the Commercial Tax Officer, Tambaram I Assessment Circle, Chennai (2010) 30 VST 581 Mad.). The impugned orders were quashed, and the petitioner was permitted to seek refund/adjustment of the credit, which the Assessing Authority was directed to consider after hearing the petitioner within two weeks of receiving the request.

Facts

The petitioner, M/s. Sri Laxmi Exports, filed six writ petitions challenging the proceedings of the Assistant Commissioner (CT), Madurai, dated April 30, 2014. These proceedings rejected the petitioner's claims for refund of taxes paid on zero-rated sales for the periods April to September 2013. The petitioner, a dealer in granite, made domestic sales and exports. The refund claims were made via Form-W, but admittedly, these were filed beyond the statutory period of 180 days stipulated under Section 18(3) of the Tamil Nadu Value Added Tax Act, 2006. The respondent rejected the claims strictly adhering to this time limit, stating the credit would lapse to the government. The total disputed amounts range from Rs. 11,18,528/- to Rs. 55,41,193/- across the six petitions.

Key Issues

1. Whether the 180-day period prescribed under Section 18(3) of the Tamil Nadu Value Added Tax Act, 2006, for filing a claim for refund of input tax credit on zero-rated sales is mandatory or directory? Petitioner's arguments: The petitioner contended that the 180-day period for filing Form-W is directory, not mandatory. They argued that the comprehensive monthly returns filed by the petitioner, which include details of zero-rated sales in Annexure-4, are available to the Assessing Authority. Therefore, Form-W is merely a convenience for the authority to receive consolidated particulars of the claim. The petitioner relied on the decision in Sara Leathers Vs. the Commercial Tax Officer, Tambaram I Assessment Circle, Chennai (2010) 30 VST 581 Mad.). Revenue's arguments: The respondent, represented by the learned Additional Government Pleader, argued that the 180-day period is mandatory. Since the petitioner admittedly filed the claims beyond this period, the respondent was justified in rejecting the refund applications strictly in accordance with Section 18(3) of the Act.