Madras HC Upholds ITC Reversal Under TN VAT Sec 19(20) for Below-Cost Sales

Jayam & Co. Vs Assistant Commissioner (Madras High Court) These batch of writ petitions challenged the constitutional validity of Section 19(20) of the Tamil Nadu Value Added Tax Act, 2006, inserted by the Tamil Nadu Value Added Tax (Second Amendment) Act, 2010 and given retrospective effect from 01.01.2007 by the Special Provision Act, 2010. Petitioners also sought to quash reassessment orders and show cause notices issued under Section 27 treating vendor discounts as taxable turnover and reversing input tax credit (ITC). The lead petitioner, a dealer in electronic appliances, purchased g...