M/S Suresh Agencies vs. The Commercial Tax Officer

Held

The Court noted that the vires of Section 19(11) of the Tamil Nadu Value Added Tax Act, 2006, had been challenged by several assessees and was ultimately upheld by the Supreme Court in the case of ALD Automotive Private Limited Vs. The Commercial Tax Officer, which confirmed the decision of the Madras High Court. Given that the only issue in the assessments related to Section 19(11) of the Act, the Court found no merit in the writ petitions. However, in the interest of justice, the petitioner was permitted to file statutory appeals against the impugned orders of assessment. These appeals, if filed within four weeks from July 11, 2019, were to be taken on file by the appellate authority without reference to limitation and disposed of expeditiously after hearing the petitioner and in accordance with law.

Facts

The petitioner, M/s. Suresh Agencies, filed three writ petitions challenging assessment orders dated December 6, 2012, passed by the Commercial Tax Officer, Ambasamudram. These orders pertained to the tax periods 2007-08, 2008-09, and 2009-10. The core of the dispute in these assessments was the petitioner's claim for Input Tax Credit (ITC) under Section 19(11) of the Tamil Nadu Value Added Tax Act, 2006. The petitioner sought to quash these orders and direct the respondent to accept their returns and allow the claimed ITC.

Key Issues

1. Whether the impugned assessment orders dated December 6, 2012, for the tax periods 2007-08, 2008-09, and 2009-10, which disallowed Input Tax Credit claimed by the petitioner, are illegal and liable to be quashed, in light of Section 19(11) of the Tamil Nadu Value Added Tax Act, 2006? Petitioner's Contention: The petitioner sought to quash the assessment orders and allow their ITC claims. The judgment does not explicitly record the petitioner's arguments beyond this prayer. Respondent's Contention: The respondent, the Commercial Tax Officer, passed the impugned orders disallowing ITC. The judgment does not explicitly record the respondent's arguments.