Itc reversal

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2013 Sir, I am SIva from Tamilnadu running a small medicine retail shop. I am registered dealer under TNVAT Act. Today i have received a notice from CTO(Assessing officer) regarding reversal of ITC for the period Jan07 to Mar07 and April 07 to Mar 08 (two years).
Due to delay in filling the returns Form I for both the F-Y (06-07 and 07-08) on 05.06.2008. Also they stated the ITC claimed during the two financial year respectively Rs.21337 (06-07) and Rs.118325 (07-08) has been reversed for non filling of returns on due date (within 90 days or within financial year ending) as per TNVAT Act. If there is any objection on this proposal of reversing this ITC should file thier objection on or before 31st of this month.
Kindly suggest me face the problem and help me sir...

Note: Reason for non filling of returns is lack of knowledge in filing the returns at the initial stages while implementing VAT. Also they have collected C Fees Rs.500 each year for the delay filing while filling the returns on 05.06.2008..

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

24 July 2013 VERY GOOD ISSUE. YOU HAVE TO REPLY FOR THE FOLLOWING QUESTIONS TO ANSWER YOUR QUERY.

1) FOR MARCH 2008, IS THERE ANY PURCHASE BILLS IN WHICH ITC IS TAKEN (OUT OF RS.118325)

2) HAVE YOU RECEIVED ANY SELF-ASSESSMENT ORDER FOR 06-07 & 07-08 FROM THE A.O?

3) IF SO THE DATE OF THE ORDER.

THE CURRENT NOTICE IS ISSUED BASED ON THE RECENT MADRAS HIGH COURT JUDGMENT.

YOU HAVE TO OBJECT FOR THIS NOTICE BECAUSE WITHOUT ORIGINAL ASSESSMENT, REVISION NOTICE IS NOT PERMITTED.

COLLECTION OF C FEES IS SEPARATE ISSUE, i.e LEVIED FOR LATE FILING.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2013 Sir,
Thanks for ur kind response and my reply to your questions as follows:
1. Total purchase for FY 1.4.2007- 31.3.2008 Rs. 2621941/- - ITC Claim Rs.118325/- (All from registered dealers and annexure I enclosed separately)
2. No,we have not yet received any assessment orders from AO for the FY 06-07 & 07-08(for any years).
Kindly do the needful.

Upgrade to CAclubindia Pro. Subscribe Now!

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

24 July 2013 I agree that you have filed annexure I. Out of Rs.118325, kindly segregate the march 08 purchases (purchase bill date) because you have filed your monthly retun of march 08 within 90 days i.e on 5.6.2008. So, that input amount the dept cannot reverse. That is safe.

Next, the department without passing the self assessment order for the year 06-07 & 07-08, now they cannot demand. This notice is his hit by limitation of 5 years.

Please send a suitable reply to the A.O and you have a fighting case in your favour.

Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2013 Reply to the notice...

Respected Sir,
Sub: ITC Revision Notice U/s. 27(2) – Dated 12/07/2013 – Reg.
Ref: TIN No. 33873290338 – Period 2006-07 & 2007-08

I have received your two revision notices dated 12/07/2013 on 19/7/2013. In the two notices you have stated that you have proposed to revise the ITC claim, which has claimed by me during the period from 01.01.2007 to 31.03.2007 – Rs. 21337/- and for the financial year 01.04.2007 to 31.03.2008 – Rs.118325/-.
Also, you have stated in both the notices, that you has been provisionally assed for the FY 2006-07 & 2007-08. But I didn’t receive any assessment order for the above said financial years 2006-07 and 2007-08 till date.
Hereby, my objections for your proposal for revision of ITC claimed by me during the FY 2006-07 Rs. 21337/- and FY 2007-08 Rs. 118325/- after the prescribed time or financial year ending as follows:
1. ITC claim made every month as per the annexure I enclosed with FORM I only.
2. If you have find any old/anti dated invoices (belongs to previous year) shall not been eligible to claim ITC. But I have verified all the bills in related to the above said Financial Year and found correct.
3. All the dealers who have supplied goods were registered dealers.
4. I have purchased the goods only from the registered dealers and disclosed the name & address of dealers with TIN Number (Annexure I) along with FORM I.
5. I have not received any notice during the FY 2006-07 & 2007-08 for non-filling of returns from your office.
6. At the initial stages I have voluntarily filled the returns in the prescribed forms.

Due to lack of knowledge on TNVAT act in the initial stage may cause this delay filling of returns could happened. Now, I am filling the returns in time and paying the tax through e-payment. I am not aware about the ITC lapse and revision of ITC. Also you have proposed to revise ITC claim after six years from the date of filling these returns is not acceptable one. This proposal of revision for the above said F-Y 2006-07 & 2007-08 may cause huge loss for me and it will suffer my business as well. Such a big sum of Rs.118325/- and 21337/- will headed towards me to shut the business as well.
Kindly drop the initiated proceeding against me, thus render justice.