Case Law Details
Farwood Industries Limited Vs Assistant Commissioner (Madras High Court)
Introduction: Farwood Industries Limited has filed writ petitions challenging an order dated 16.02.2021 by the Assistant Commissioner for the assessment years 2015-16 and 2016-17. The petitioner, a registered dealer under the Tamil Nadu Value Added Tax (TNVAT) Act, is involved in manufacturing and selling cupboards, wardrobes, furniture, doors, and windows. During these assessment years, the petitioner claimed input tax credit (ITC) for the purchase of raw materials, both interstate and intrastate. VAT audit revealed various defects, including purchase suppression and mismatch.
Detailed Analysis:
1. Background: The petitioner engaged in the purchase of raw materials and claimed ITC during the assessment years 2015-16 and 2016-17. A VAT audit conducted on 24.04.2017 identified defects such as purchase suppression, incorrect ITC availing, mismatch of ITC, and sales suppression.
2. Notice and Objection: The respondent issued a notice on 23.10.2019, calling upon the petitioner to submit objections. The petitioner responded on several occasions, providing details requested by the respondent. However, the impugned order, dated 16.02.2021, does not reflect a consideration of the petitioner’s responses.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
