HC Allowed Assessee to Carry Forward ITC of TDS under TNVAT Act to GST Regime Where Benefit of Transitional Credit Was Denied
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Case Details: Harshandh Construction (P.) Ltd. v. Assistant Commissioner (ST), Varadarajapuam - [2023] 156 taxmann.com 376 (Madras)
Judiciary and Counsel Details
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- C. Saravanan, J.
- M.A. Mudimannan, Adv. for the Petitioner.
- Ms Amirtha Poonkodi Dinakaran, Adv. for the Respondent.
Facts of the Case
The writ petition pertains to the denial of TDS which was claimed as Transitional Credit under Section 140 of the TNGST Act, 2017 during the transition period. The petitioner was entitled to set-off the TDS towards its tax liability under the provisions of the Tamil Nadu Value Added Tax (TNVAT) Act, 2006.
The GST authorities denied the same to be considered as Transitional credit on the ground that the dealer can carry forward the input tax credit, and not the excess tax paid by them. Thus, the tax authorities passed assessment order for wrongly availed ITC along with interest and penalty.
High Court Held
Based on the existing High Court rulings in the case of M/s. DMR Constructions and M/s. Sekar Constructions, the Madras High Court set aside the impugned Assessment Order and held that the petitioner was entitled to carry forward ITC of TDS under TNVAT Act to GST regime. The case was remitted back to revenue to pass fresh order de novo on merits.
List of Cases Reviewed
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- DMR Constructions v. Assistant Commissioner [W. P. Nos. 9991 of 2020] (para 7)
- Sekar Constructions v. Assistant Commissioner (ST), Kancheepuram District [W. P. No. 5448 of 2020 ](Para 8) followed.
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