Madras High Court
Dcw Limited vs The Appellate Deputy Commissioner on 31 January, 2019
Author: G.R.Swaminathan
Bench: G.R.Swaminathan
1
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 31.01.2019
CORAM:
THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN
W.P.(MD)Nos.16671, 16672 and 16673 of 2015
and
M.P.(MD)Nos.1,1,1,2,2 and 2 of 2015
DCW Limited
represented by General Manager
(Legal and Indirect Taxation)
Mr.M.Thyagamoorthy
Sahupram,
Tuticorin District. ...Petitioner in all writ petitions
Vs
1.The Appellate Deputy Commissioner,
Commercial Taxes,
Tirunelveli.
2.The Commercial Tax Officer,
Tiruchendur. ... Respondents in all writ petitions
PRAYER in W.P.(MD)No.16671 of 2015: Petition filed under
Article 226 of the Constitution of India to issue a Writ of Certiorari
calling for the records relating to the order passed by the first
respondent / Appellate authority in V/2/2014 dated 01.07.2015
quash the same.
http://www.judis.nic.in
2
PRAYER in W.P.(MD)No.16672 of 2015: Petition filed under
Article 226 of the Constitution of India to issue a Writ of Certiorari
calling for the records relating to the order passed by the first
respondent / Appellate authority in V/3/2014 dated 01.07.2015
quash the same.
PRAYER in W.P.(MD)No.16673 of 2015: Petition filed under
Article 226 of the Constitution of India to issue a Writ of Certiorari
calling for the records relating to the order passed by the first
respondent / Appellate authority in V/4/2014 dated 01.07.2015
quash the same.
For Petitioner : Mr.P.R.Raman
Senior Counsel
For R1 : Mr.A.Chellapandian
Additional Advocate General
For R2 : Mr.Aayiram K.Selvakumar
Additional Government Pleader
(in all writ petitions)
COMMON ORDER
The orders impugned in these writ petitions are questioned on a number of grounds. The learned Senior Counsel appearing for the writ petitioners reiterated the contentions set out in the affidavits filed in support of these petitions. http://www.judis.nic.in 3
2.Heard the learned Additional Advocate General appearing for the respondents who also argued extensively for sustaining the orders impugned in this writ petition. One of the core issue that arises for consideration in these writ petitions is whether VAT paid on inputs used in the captive power plant qualified for Input Tax Credit because the final product namely energy is an exempted commodity.
3.The respondents had taken the view that they would not so qualify for Input Tax Credit. The order passed by the appellate authority was on 01.07.2015. But on 22.07.2015, in response to a query raised by the Chemnplast Sanmar Limited, Chennai, the Government had clarified the issue in its letter No. Acts Cell 5/21619/15 dated 22.07.2015. The clarification reads as under:
“(i) VAT paid on inputs used in captive power plant qualifies for input tax credit to the extent the power and steam is used for manufacture of final products.
(ii) VAT paid on capital goods used in their captive power plant (power generated to be used only in this dealer's own manufacturing plant) is eligible for input tax credit under Section 19(3) of TNVAT Act, 2006 read with rule 10(4) of TNVAT Rules, 2007.” http://www.judis.nic.in 4
4.The learned counsel on either side do accept that this clarification given by the Government will have a major bearing on the present challenge.
5.Therefore, without going into the other issues, this Court sets aside the orders impunged in these writ petitions and remits the matter to the file of the assessing officer namely the Commercial Tax Officer, Tiruchendur. The assessing officer shall fix a date for personal hearing of the writ petitioners and after hearing the writ petitioners, pass orders afresh and in accordance with law.
6.It is made clear that all the issues are left open. This Court has not pronounced anything on the merits of the matter. Since all the findings adverse to the writ petitioners stand vacated, the field is now left open. The petitioners are at liberty to urge all the contentions in their favour. The second respondent is directed to consider all the contentions of the petitioners and pass orders afresh and in accordance with law.
http://www.judis.nic.in 5
7.Accordingly, these writ petitions stand allowed. No costs. Consequently, connected miscellaneous petitions are closed.
31.01.2019
Index : Yes/No
Internet : Yes/No
pnn
To
1.The Appellate Deputy Commissioner, Commercial Taxes, Tirunelveli.
2.The Commercial Tax Officer, Tiruchendur.
http://www.judis.nic.in 6 G.R.SWAMINATHAN, J.
pnn W.P.(MD)Nos.16671, 16672 and 16673 of 2015 and M.P.(MD)Nos.1,1,1,2,2 and 2 of 2015 31.01.2019 http://www.judis.nic.in