Court :
Madras High Court
Brief :
The Hon'ble Madras High Court in the case of M/s. Radhikka Ceramic World v. State Tax Officer [Writ Petition (MD) No. 1098 of 2021 dated April 04, 2024] held that the amount of advance tax that was un-utilized under the Value Added Tax ("VAT") or the Tamil Nadu Value Added Tax Act, 2006 ("the TNVAT Act"), has to be allowed to be transitioned under Section 140 of the Tamil Nadu Goods and Services Tax Act, 2017 ("the TNGST Act").
Citation :
Writ Petition (MD) No. 1098 of 2021 dated April 04, 2024
The Hon'ble Madras High Court in the case of M/s. Radhikka Ceramic World v. State Tax Officer [Writ Petition (MD) No. 1098 of 2021 dated April 04, 2024] held that the amount of advance tax that was un-utilized under the Value Added Tax ("VAT") or the Tamil Nadu Value Added Tax Act, 2006 ("the TNVAT Act"), has to be allowed to be transitioned under Section 140 of the Tamil Nadu Goods and Services Tax Act, 2017 ("the TNGST Act").
M/s. Radhikka Ceramic World ("the Petitioner") was engaged in selling ceramic tiles and similar articles. These tiles were imported from various states. There was an apprehension that in the Tile Industry, there was large-scale tax evasion. Further, tax in advance was calculated from the Petitioner at the Tuticorin port at 20% of the invoice value in advance.
The VAT Returns filed under VAT Form-I dated August 08, 2017 an amount of INR 3,71,331/- remained unutilized in the VAT returns of the Petitioner for the month of July, 2017. Therefore, the Petitioner transited the aforesaid amount of advance tax paid to the Commercial Tax Department at the time of import in the state from the other State in terms of Section 140 of the TNGST Act.
The State Tax Officer ("the Respondent") passed an Order dated December 23, 2019 ("the Impugned Order") denying the transitional tax that remained unutilized in the VAT returns filed by the Petitioner for the month of July, 2017 on August 08, 2017.
Hence, the Petitioner aggrieved by the Impugned Order filed the present writ petition.
Whether the unutilized VAT Credit is allowed to be transitioned under the GST regime?
The Hon'ble Madras High Court in Writ Petition (MD) No. 1098 of 2021 held as under:
OFFICIAL JUDGMENT COPY HAS BEEN ATTACHED