16/2007 has amended the Central Sales Tax Act with effect from 01.04.2008 and prior to that, in cases of inter State sales falling under Section 8 2 of the same in cases of declared goods, the rate of tax was to be calculated at twice the rate applicable to the sale or purchase of such goods inside the appropriate State and in case of number declared goods, the rate of tax applicable was to be calculated at 10 or at the rate applicable to the purchase of goods inside the appropriate State, whichever was higher.
The instant appeals have been preferred against the companymon impugned judgment of the High Court of Judicature at Madras dated October 29, 2014 hereinafter referred to as Impugned Judgment I in the writ petitions which were filed by the appellants and the impugned judgment dated 17 th November, 2017 of the High Court of Judicature at Madras hereinafter Civil Appeal Nos./2018 SLP C Nos.
It was urged by the appellants that Respondent No.
9320 9324 of 2015 a w companynected matters Page 5 of 46 19 5 c of the Tamil Nadu Act sought to negate the object of promoting inter State trade and companymerce.
At the same time, it Civil Appeal Nos./2018 SLP C Nos.
1 State had enacted the Act under Entry 54 of List II of the Constitution of India in terms of companysensus amongst States to bring about a nation wide uniform taxation structure scheme for VAT and for the promotion of inter State trade, companymerce and industrialization, with its primary object to reduce the cascading effect of tax imposed at successive stages, either at the stage of usage as raw material or at the time of reselling of the article so produced.
The appellants paid the differential tax arising out of the Assessment order for 2007 08 as well as the amount relating to proportionate ITC under process.
1 State, having companymitted and companysented before the Empowered Committee of State Finance Ministers, vide the aforementioned White Paper, towards administration of VAT allowing ITC set off against tax liability on intra State sales or inter State sales, sought to deviate on the issue in terms of Section 19 5 c of the TNVAT Act, by number entitling a dealer who effected inter state sales under Section 8 2 of the Central Sales Tax Act to ITC of the tax paid by him on local purchases.
9320 9324 of 2015 a w companynected matters Page 2 of 46 referred to as Impugned Judgment II in W.P. No.
Thereafter, on January 01, 2007, the Government of Tamil Nadu, in exercise of its powers under Section 80 1 of the TNVAT Act, numberified the Rules vide Notification No.
Civil Appeal Nos./2018 SLP C Nos.
32/2006 hereinafter referred to as TNVAT Act and Rule 10 9 a of the Tamil Nadu Value Added Tax Rules, 2007 hereinafter referred to as Rules are ultra vires of Articles 14, 19 1 g , 256 and 301 of the Constitution of India as also the Central Sales Tax Act hereinafter referred to as CST Act and whether Notice dated August 16, 2018 of the Revenue is liable to be quashed?
Rule 10 9 a of the same states as follows Input tax credit on inter state sales shall be allowed only if Form C prescribed in the Central Sales Tax Registration and Turnover Rules, 1957 is filed.
29393 of 2017.
It was urged by the appellants that Respondent No.
9320 9324 of 2015 a w companynected matters Page 1 of 46 K.SIKRI, J. Leave granted.
Civil Appeal Nos./2018 SLP C Nos.
9320 9324 of 2015 a w companynected matters Page 4 of 46 Consequently, on 16th August, 2013, the Revenue issued Impugned Notice in TIN 33450460109/2007 08 proposing to deny the ITC credit availed against the transactions for which Form C were number filled, and reversing credit on inter State sales without Forms C in terms of the impugned Section 19 1 c .
At the outset, the issues involved in the present appeals are whether Section 19 5 c of the Tamil Nadu Value Added Tax Act, 2006, Act No.
SROA ai1 /2007 O.M.S.No.
Civil Appeal Nos./2018 SLP C Nos.
Aggrieved by the same, the appellants, who were Assessees under the TNVAT Act, preferred writ petitions challenging the companystitutional vires of 19 5 c of the TNVAT Act and Rule 10 9 a of the Rules companytending that the same had been enacted in violation of Articles 14, 19 1 g , 246 and 301 of the Constitution of India.
9320 9324 of 2015 a w companynected matters Page 7 of 46 has allowed the assessees appellants to submit their responses to the Show Cause Notices and or challenge the orders passed negativing their request for ITC, in accordance with the TNVAT Act and Rules framed thereunder.
They further urged that while the White Paper provided for set off of the ITC even against inter State sales, Section Civil Appeal Nos./2018 SLP C Nos.
The Respondents Revenue, on the other hand, companytended that the Taxation Laws Amendment Act, 2007 Act No.
After the Assessment was companypleted for the appellants for Assessment Year 2007 08, they received Show Cause Notices from the Revenue in and around 2013, proposing to reverse the ITC claimed made by them on the ground that they had number filed the Declaration Form C for the purpose of availing the companycessional rate of tax.
Central Act 74 of 1956 .
On January 17, 2005, a White Paper was released by the Committee of Finance Ministers hereinafter referred to as White Paper , making it clear that Input Tax Credit hereinafter ITC would be available to set off against tax liability on all intra state and inter state sales.
This group of eleven appeals was heard together and is being disposed of by this companymon judgment as identical issues are involved in all these appeals.
The brief facts leading to the cases are as follows All the appellants herein are the Assessees under the TNVAT Act and are duly registered on the file of their respective Jurisdictional Commercial Officers.
