Tvl Kurian Abraham Pvt. Ltd. Vs State of Tamil Nadu (Madras High Court)
The case before the Madras High Court involved multiple revision petitions challenging a common order of the Tamil Nadu Sales Tax Appellate Tribunal, which had restored purchase tax demands against the assessee.
The petitioner, a manufacturer and exporter of latex surgical and examination gloves, had purchased raw rubber from both registered and unregistered dealers. For the assessment years 2007–08 to 2010–11, the petitioner filed returns, paid output tax on sales turnover, and claimed Input Tax Credit (ITC). Initially, assessments were accepted. However, revised assessment orders were later issued levying purchase tax on the purchase turnover.
The petitioner challenged these orders before the Appellate Deputy Commissioner, who allowed the appeals and set aside the levy. The State filed second appeals before the Tribunal, which reversed the appellate authority’s decision and restored the tax demand. This led to the present revision petitions.
Two key questions of law were framed: whether purchase tax demand was sustainable when output tax had already been paid and ITC could offset the liability, and whether the Tribunal erred in holding that the petitioner filed incorrect returns despite system-related issues in the online filing mechanism.
