DALMIA LAMINATORS LTD , REPRESENTED BY ITS COMMERCIAL MANAGER / AUTHORISED SIGNATORY Vs. ASSISTANT COMMISSIONER (CT), GUMMIDIPOONDI ASSESSMENT CIRCLE

JUDGEMENT

(1.) Heard Mrs.Radhika Chandrasekhar, learned counsel appearing for the petitioner and Mr.K.Venkatesh, learned Government Advocate, who accepts notice for the respondent. With consent of the learned counsel appearing for both sides, the writ petition is taken up for final disposal, at the admission stage itself.

(2.) The petitioner is a registered dealer under the provisions of the Tamil Nadu Value Added Tax Act, 2006 (in short "the Act") and the Central Excise Act, 1956, and they have been filing monthly returns within the time stipulated under the respective statutes. The petitioner is engaged in the manufacture of HDPE and PP bags and their goods are sold within the State of Tamil Nadu as well as Interstate. The petitioner also stock transfers the goods to their other branches.

(3.) The petitioner's case is that they have manufactured goods by purchasing raw materials through interstate sales against Form C declarations and stock transfer the deficiency goods, against all items, to their branches situated outside the state of Tamil Nadu and availed Input Tax Credit. The goods used in the manufacture are sold to the customers inside the state of Tamil Nadu as well as outside the State. The petitioner filed their returns for the assessment year 2014-15 and they were deemed to have been assessed under Section 22(2) of the Act, on 31.10.2015. Subsequently, on verification of the returns, the respondent issued revision notice, dated 26.10.2016, stating that the petitioner had sold / transferred goods in interstate during 2014-15 to unregistered / registered dealers and paid tax at the rate of 0, 2, 5 and 14.5%. However, they have not made any reversal of ITC during the course of business. Accordingly, the respondent proposed to revise the Input Tax Credit of Rs.2,36,46,369/- under Section 27 of the Act and proposed to levy penalty at 50% under Section 27 (3) and (4) of the Act. The petitioner was granted 15 days time from the date of receipt of the notice to submit their objections and was informed that opportunity of being personally heard within the above time limit will be afforded by the respondent.