M/S. White Light Group vs The Assistant Commissioner (Ct)

Writ Petition No.31565 of 2012 is filed under Article 226 of Constitution of India praying to issue a Writ of Certiorari, calling for the impugned proceedings of the respondent in TIN:33020442449/2011-12 dated 24.08.2012, quash the same as illegal and violative of the decisions rendered by the Hon'ble Apex Court in State of Maharashtra Vs Suresh Trading Company (1998)109 STC 439(SC) and the judgment of this Hon'ble Court in Sree Narayan Timbers Vs Joint Commissioner (CT)-II, Madras-5 78 STC 195 insofar as it seeks to reverse the claim of Input Tax Credit on the premise of cancellation of registration with retrospective effect of the petitioner's sellers.

Writ Petition No.31566 of 2012 is filed under Article 226 of Constitution of India praying to issue a Writ of Certiorari, calling for the impugned proceedings of the respondent in TIN:33020442449/2011-12 dated 4.10.2012, quash the same as illegal and violative of the decisions rendered by the Hon'ble Apex Court in State of Maharashtra Vs Suresh Trading Company (1998)109 STC 439(SC) and the judgment of this Hon'ble Court in Sree Narayan Timbers Vs Joint Commissioner (CT)-II, Madras-5 78 STC 195 insofar as it seeks to reverse the claim of Input Tax Credit on the premise of cancellation of registration with retrospective effect of the petitioner's sellers.

For Petitioner in both W.Ps. : Mrs.R.Hemalatha

For Respondent in both W.Ps. : Mr.A.R.Jayaprathap, Government Advocate (Tax)

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COMMON ORDER

Writ Petition No.31565 of 2012 is filed praying to issue a Writ of Certiorari, calling for the impugned proceedings of the respondent in TIN:33020442449/2011-12 dated 24.08.2012, quash the same as illegal and violative of the decisions rendered by the Hon'ble Apex Court in State of Maharashtra Vs Suresh Trading Company (1998)109 STC 439(SC) and the judgment of this Hon'ble Court in Sree Narayan Timbers Vs Joint Commissioner (CT)-II, Madras-5 78 STC 195 insofar as it seeks to reverse the claim of Input Tax Credit on the premise of cancellation of registration with retrospective effect of the petitioner's sellers.

2. Writ Petition No.31566 of 2012 is filed praying to issue a Writ of Certiorari, calling for the impugned proceedings of the respondent in TIN:33020442449/2011-12 dated 4.10.2012, quash the same as illegal and violative of the decisions rendered by the Hon'ble Apex Court in State of Maharashtra Vs Suresh Trading Company (1998)109 STC 439(SC) and the judgment of this Hon'ble Court in Sree Narayan Timbers Vs Joint Commissioner (CT)-II, Madras-5 78 STC 195 insofar as it seeks to reverse the claim of Input Tax Credit on the premise of cancellation of registration with retrospective effect of the petitioner's sellers.

3. Mr.A.R.Jayaprathap, learned Government Advocate (Tax) takes notice for the respondent. The relief sought for in both writ petitions is one and the same. By consent both the writ petitions are taken up together for final disposal.

4. In these two writ petitions, the revision notices issued by the Assistant Commissioner (CT) insofar as class (b) of the notice is concerned, petitioner is willing to give a reply to the authority and pursue the same in accordance with law.

5. The plea taken insofar as the present issue, namely, reversal of input tax credit is concerned, the contention of the petitioner's counsel is that the goods in question were purchased when the selling dealer had a valid registration certificate and on the basis of such sale input tax credit was availed. Under the revision notice, the benefit granted by way of input tax credit was sought to reversed on the plea that the registration certificate of the selling dealer has been cancelled with effect from the date prior to the date of purchase of the goods by the petitioner herein.

6. This issue has been considered by this court in a batch of writ petitions, viz., W.P.Nos.12305, 12306, 28739, 26800, 25013, 25014, 25225, 29010 to 29012 and 24656 to 24661 of 2012 and 29929 of 2011 and by a common order, this court passed the following orders:

"15. In the present case, it is not in dispute that the registration certificates of the selling dealers have been cancelled with retrospective effect and, therefore, to reverse the input tax credit on the plea that registration certificates have been cancelled with retrospective effect cannot be countenanced. Whatever benefits that has accrued to the petitioners based on valid documents in the course of sale and purchase of goods, for which tax has been paid cannot be declined. The transaction that took place when the registration certificates of the selling dealer were in force cannot be denied to the petitioners/assessees on the above plea. This is contrary to the law laid down by the Supreme Court in the above stated case.

For the foregoing reasons, the notices, revised assessment orders and the provisional assessment order, insofar as it seeks to deny the benefit of input tax credit to the petitioners/assessees only on the ground that the registration certificates of the selling dealers have been cancelled with retrospective effect, are set aside. These writ petitions are allowed, as indicated above. No costs. Consequently, connected miscellaneous petitions are closed."

7. Accordingly, the revision notices in both the writ petitions insofar as it relates to reversal of input tax credit on the ground that the goods were purchased from a selling dealer whose registration has been cancelled prior to the date of purchase is set aside. Insofar as class (b) of the notice is concerned, petitioner is willing to give a reply to the authority and pursue the same in accordance with law. Accordingly, the petitioner is directed to give a reply to the authority and on receipt of reply, the authority shall consider the same on merits and in accordance with law expeditiously.

8. Both the writ petitions are allowed to the extent indicated above. No costs. Consequently, connected miscellaneous petitions are closed.

ts

To

The Assistant Commissioner (CT), Egmore-I Assessment Circle, Chennai