M/S. SUNRISE CHENNAI DISTRIBUTORS PRIVATE LTD. Vs. THE COMMERCIAL TAX OFFICER, T.NAGAR ASSESSMENT CIRCLE, 46, PASUMPON MUTHU RAMALINGAM SALAI, CHENNAI

JUDGEMENT

(1.) This writ petition has been filed for issuance of writ of of Certiorari fed Mandamus, calling for the records culminating in the order of the respondent dated 23.12.2016 made in No. TIN33631562900/13-14 and quash the same and consequently grant the benefit of Input Tax Credit as claimed for 2013-14 in view of the returns filed by the petitioner's Vendor for the relevant period.

(2.) The petitioner who is a registered dealer on the file of the respondent under the provisions of the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) and the Central Sales Tax Act, 1956 (CST Act) has filed this writ petition challenging an assessment order passed by the respondent under the TNVAT Act for the year 2013-14. The petitioner would stated that they are a retail chain carrying on business under the name and style "M/s. WAITROSE". During February 2014, the petitioner made outright purchase of a departmental store from M/s. Sabari Super Market Private Limited and applied for a registration under the TNVAT Act and CST Act by filing Form A on 19.02.2014. The petitioner's vendor was also a registered dealer under the provisions of the TNVAT Act. The petitioner was issued with a Sales Tax Registration Certificate dated 03.04.2014 which was received by the petitioner on 10.04.2014 which was given effect from 19.02.2014, the date of the petitioner's application. The petitioner would state that the procedure required to be followed under Section 39 r/w. Rule 5 of the Tamil Nadu Value Added Tax Rules, 2007 (hereinafter referred to as "the Rules") was violated as the certificate was not issued within a period of thirty days from the date of receipt of the application apart from not being issued a password to enable the petitioner to electronically file the monthly returns. Unless and until the petitioner was able to file their returns electronically and only at that point of time, the benefit of Section 19(11) of the TNVAT Act could be invoked. Ultimately, the password was issued to petitioner to access the Portal only on 30.06.2014, after three months after the lapse of the assessment year 2013-14, thereby rendering it impossible for the petitioner to comply with Section 19(11) of the TNVAT Act for the purpose of filing input tax credit.

(3.) The respondent by order dated 14.01.2015 rejected the claim of the petitioner for input tax credit for the assessment year 2013-14. The petitioner challenged the said order by filing W.P. No. 3820 of 2015 which was dismissed by order dated 16.02.2015. The petitioner preferred an appeal in W.A. No. 828 of 2015 and the Hon'ble Division Bench by judgment dated 15.02.2016 allowed the writ appeal by setting aside the order of the Assessing Officer dated 14.01.2015 and remitted the matter back to the Assessing Officer for fresh finding with regard to the question as to whether the appellant was issued a certificate of registration within time and as to whether the appellant was prevented from filing online returns or manual returns, as the case may be. On such remand, the Assessing Officer passed an order dated 23.12.2016 disallowing the claim of ITC and holding that the petitioner is liable to reverse the ITC claim for the year 2013-14 to the tune of Rs. 54,16,090/- and issued a demand dated 23.12.2016. This order dated 23.12.2016 and the consequential demand are impugned in this writ petition.