Tvl. AP Foundries Private Limited Vs Assistant Commissioner (ST)(FAC) (Madras High Court)
In a recent legal battle, Tvl. AP Foundries Private Limited took on the Assistant Commissioner regarding transitional credit entitlement. The Madras High Court intervened, offering the petitioner a chance to challenge the tax demand by meeting a condition of paying 10% of the disputed amount.
The crux of the matter dates back to an order issued on 25th April 2023, contested through a writ petition. Tvl. AP Foundries Pvt Ltd, a registered dealer under the Tamil Nadu Value Added Tax Act, 2006, had previously availed transitional credit amounting to Rs.1,20,963.61. However, a show cause notice was issued concerning the eligibility of this credit, prompting the petitioner to respond on 14th February 2023, seeking clarification on the alleged ineligible Input Tax Credit.
During the legal proceedings, the petitioner’s counsel highlighted the comprehensive details of purchases, including invoice specifics such as numbers, dates, commodity codes, purchase values, and tax amounts paid. The denial of transitional credit, as per the petitioner’s argument, stemmed solely from the alleged default by the concerned supplier. Hence, the petitioner requested an opportunity to present their case regarding the tax demand.
The government’s counsel, Mr. T.N.C.Kaushik, acknowledged the receipt of the break-up details and presented a screenshot from the portal to support the claim. Subsequently, upon instructions, the petitioner’s counsel expressed their willingness to remit 10% of the tax demand, thus agreeing to a condition for remand.
