Tvl.Feeds And Condiments vs. The Assistant Commissioner

Held

The Court noted that the petitioner had filed a representation under Section 84 of the Tamil Nadu Value Added Tax Act, 2006, seeking rectification of the assessment order dated March 15, 2017, due to the non-consideration of their Input Tax Credit claim. The respondent acknowledged the pendency of this representation and requested time to consider it. Given the limited prayer of the petitioner, the Court, without delving into the merits of the case, directed the respondent to consider the petitioner's representation filed under Section 84 of the Act within a period of four weeks from the date of receipt of a copy of the order. The assessment order itself was not set aside, nor was the ITC claim adjudicated upon by the High Court.

Facts

The petitioner, Tvl. Feeds and Condiments Industries, is an assessee engaged in the business of Tin Containers. For the assessment year 2015-2016 (CST), the petitioner reported a total turnover of Rs. 33,46,314/- and a taxable turnover of Rs. 32,20,314/-, filing monthly returns and paying tax after deducting Input Tax Credit (ITC) as per the Tamil Nadu Value Added Tax Act, 2006. The respondent, The Assistant Commissioner (CT) – II, Virudhunagar, completed the assessment on March 15, 2017, accepting the reported turnover. However, the respondent inadvertently failed to consider the petitioner's ITC claim, wrongly determining a tax due of Rs. 64,406/-. Aggrieved, the petitioner filed a representation on April 20, 2017, under Section 84 of the Act seeking rectification of this error. As this representation was pending, the petitioner filed the present writ petition.

Key Issues

1. Whether the respondent erred in not considering the petitioner's Input Tax Credit claim while passing the assessment order dated March 15, 2017, under Section 22(2) of the Tamil Nadu Value Added Tax Act, 2006, thereby leading to an incorrect demand of tax? Petitioner's Contention: The petitioner argued that the respondent failed to consider their eligible Input Tax Credit claim, resulting in an erroneous calculation of the tax payable. They relied on the provisions of the Tamil Nadu Value Added Tax Act, 2006, and its Rules for claiming ITC. Respondent's Contention: The respondent, through the learned Additional Government Pleader, acknowledged that the petitioner's representation under Section 84 of the Act was pending and sought four weeks' time to pass appropriate orders on merits.