Section 19(15) in Tamil Nadu Value Added Tax Act, 2006
(15)Where a registered dealer has purchased any taxable goods from another dealer and has availed input tax credit in respect of the said goods and if the registration certificate of the selling dealer is cancelled by the appropriate registering authority, such registered dealer, who has availed by way of input tax credit, shall pay the amount availed on the date from which the order of cancellation of the registration certificate takes effect. Such dealer shall be liable to pay, in addition to the amount due, interest at the rate of [two] [Substituted for the words 'one and a quarter per cent' by Section 3 of the Second Amendment Act No 11 of 2013, effective from 28th May 2013.] per cent, per month, on the amount of tax so payable, for the period commencing from the date of claim of input tax credit by the dealer to the date of its payment.
