C. MANICKAM CHETTY Vs. DEPUTY COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) THE petitioner sought a certiorarified mandamus to quash the order of the respondent dated June 6, 2007. The petitioner is a registered dealer under the Tamil Nadu Value Added Tax Act, 2006 and an assessee on the file of the respondent and reported Rs. 12,96,478.98 being closing stock value and a consequent input tax credit amount of Rs. 1,60,709.76 reported to the respondent for availing input credit. The respondent granted credit only to the tune of Rs. 72,646 as eligible amount of input tax credit and for the rest of the amount declined to grant input tax credit for the inter -State purchase value of Rs. 6,56,581.42. 2.

(2.) THE petitioner received the pre -assessment notice dated April 11, 2007 and by reply dated May 30, 2007, objected to the proposal for disallowance of the facility for the balance amount of Rs. 88,063.76 on the ground that the entire closing stock value of Rs. 12,96,478.98 had been tax -suffered goods under the Tamil Nadu General Sales Tax Act, 1959 which include the inter -State purchase turnover of Rs. 6,56,581.42. 3.

(3.) THE assessing officer considered the objection of the dealer dated May 30, 2007 with reference to the statutory provision and ordered as follows: Section 19(5)(b) of the Tamil Nadu Value Added Tax Act, 2006 states that 'no input tax credit shall be allowed on tax paid or payable in other States on goods brought into the State from outside the State'. Rule 10(3)(b)(i) states that the purchase has been effected from the first seller in the State with invoice, the claim of input tax credit shall be allowed.