MADAN AGENCIES Vs. ASSISTANT COMMISSIONER (CT)

JUDGEMENT

(1.) Heard Mrs.R.Hemalatha, learned counsel for the petitioner and Mr.Kanmani Annamalai, learned Additional Government Pleader appearing for the respondent. With the consent of the learned counsel appearing on either side, the Writ Petition itself is taken up for final disposal.

(2.) The petitioner is a dealer in general goods and assessee on the file of the Assistant Commissioner (CT) (FAC), Vellure (Rural), Vellore. For the assessment year 2012-13, the petitioner filed monthly returns in Form I with annnexures I & II, reporting a total and taxable turnover of Rs.33,92,28,479/- and during year under reference, the petitioner claimed Input Tax Credit amounting to Rs.3,15,32,012/- and adjusted ITC towards Output tax due to the extent of Rs.3,10,45,118/-.

(3.) The respondent issued a notice dated 22.08.2013, stating that on verification of the monthly returns, it was found that the Input Tax Credit amount claimed has not reached the Government Exchequer, as the purchases were not reported by their seller. Therefore, the respondent proposes to reverse the availment of Input Tax Credit, apart from proposing to levy penalty.