M/S.Rama Metals v. The Assistant Commissioner(Ct)
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 15.06.2015
CORAM
THE HON'BLE MR. JUSTICE T.RAJA W.P.Nos.16841 and 16842 of 2015 and M.P.Nos.1 and 1 of 2015 M/s.Rama Metals rep. By its Proprietor
...Petitioner in both the W.Ps
Vs.
The Assistant Commissioner (CT), Broadway Assessment Circle, 199, Thambu Chetty Street, Chennai - 1.
...Respondent in both the W.Ps
Petitions filed under Article 226 of the Constitution of India praying to issue a writ of certiorari to call for the impugned proceedings of the respondent in TIN/33590060877/2013-2014 and TIN/33590060877/2014-2015 and quash the impugned orders dated 14.05.2015 as passed contrary to the principles of natural justice and also contrary to the judgment of the Hon'ble Supreme Court in the case of the State of Maharashtra Vs. Suresh Trading Company reported in 109 STC 439 and this Court in the case of M/s.Jinsasan Distributors Vs. Commercial Tax Officer (CT), Chintadripet Assessment Circle reported in 59 VST 256 in the case of M/s.Althaf Shoes (P) Ltd., reported in 50 VST 179 in the case of M/s.Sri Vinayaga Agencies reported in 60 VST 283, in the case of Aassan Global Trade in W.P.Nos.25996 to 25998 of 2014 and also in the case of M/s.Infiniti Wholesale Limited in W.P.No.9265 of 2013.
For Petitioner :
Mr.P.Rajkumar in both the W.Ps For Respondent :
Mr.S.Kanmani Annamalai, Addl. Govt. Pleader (T) in both the W.Ps
COMMON ORDER These two writ petitions have been filed by M/s.Rama Metals, challenging the impugned orders issued by the Assistant Commissioner (CT), Broadway Assessment Circle, Chennai in TIN/33590060877/20132014 and TIN/33590060877/2014-2015 dated 14.05.2015, in and by which, the reversal of ITC has been made against the petitioner. That apart, penalty was also imposed under Section 27(4) of the TNVAT Act.
2. Heard the learned counsel appearing for the petitioner and the learned Additional Government Pleader appearing for the respondent.
3.The learned counsel for the petitioner would submit that the petitioner company is a dealer in ferrous and non-ferrous goods and assessee in the books of Assistant Commissioner (CT), Broadway Assessment Circle. The petitioner has filed monthly returns under TNVAT Act for the assessment years 2013-2014 and 2014-2015. In the meanwhile, the enforcement wing officials inspected the place of business on 21.04.2014 and noticed that the petitioner has effected purchase of goods from certain registered dealers whose registration certificates have been cancelled and the ITC claimed by the petitioner is ineligible under Section 19(13) of TNVAT Act. Subsequently, the respondent issued notice dated 23.01.2015, to which, a detailed reply was given by the petitioner on 12.02.
2015 taking a specific stand that merely on the ground of cancellation of registration certificates of the sellers with retrospective effect, the respondent cannot deny the benefit of ITC to the petitioner as it is contrary to the law laid down by the Apex Court in State of Maharashtra Vs. Suresh Trading Company reported in 109 STC 439. 4.Adding further, the learned counsel for the petitioner would submit that in a similar matter in W.P.Nos.11404 to 11407 of 2015, accepting the similar contention, this Court allowed the writ petitions on 20.04.2015 and directed the respondent therein not to deny the benefit of ITC to the petitioner therein as it is contrary to the law laid down by the Apex Court in the aforesaid judgment.
Similarly, in the present case also, it was the claim of the petitioner that at the time of purchase, they filed returns and claimed ITC. However, the assessing authority has passed the impugned assessment orders.
5.No doubt, the notice was received by the petitioner on 23.01.2015, for which, a detailed reply was also given, stating that
no ITC should be reversed in the light of the aforesaid judgment of the Apex Court.
6.Mr.S.Kanmani Annamalai, learned Additional Government Pleader appearing for the respondent is unable to defend the impugned orders. 7.It has been held by this Court that the cancellation of the registration certificates of the selling dealers with retrospective effect will not entitle the Department to reverse the ITC already availed by the assessee consequent to the assessment order passed by the competent authority. Therefore, the impugned orders are liable to be set aside and accordingly, they are set aside. 8.In the result, the writ petitions are allowed. No costs. Consequently, connected miscellaneous petitions are closed. Sd/- Assistant Registrar(CS-III) //True Copy// Sub Assistant Registrar mmi To The Assistant Commissioner (CT), Broadway Assessment Circle, 199, Thambu Chetty Street, Chennai - 1.
1 CC to the Spl. Government Pleader, SR.No. 29192 W.P.Nos.16841 and 16842 of 2015 KU (CO) PSI (19.08.2015)