Single judge order on Input Tax Credit stayed

CHENNAI: A Division Bench of the High Court on Tuesday stayed the operation of a common order of February 6 this year of a single judge, who set aside an order dated February 6, 2014 of the Commercial Taxes department in Coimbatore restoring Input Tax Credit (ITC) on manufacturers.

The bench of Justices S Manikumar and R Suresh Kumar granted the interim injunction while admitting writ appeals from the Commercial Taxes department. Originally, while passing orders on a batch of writ petitions from Everest Industries Limited in Podanur in Coimbatore district, the single judge on February 6 this year had set aside the order dated February 6, 2014 of the department bringing back ITC.

Advocate-General Vijay Narayan submitted that based on orders of the government, several writ petitions have been filed by the assessees/manufacturers for relaxation of ITC. If the request is conceded, the department would be deprived of a revenue of over ` 1,000 crore.

“Considering the importance of the issue and on prima facie satisfaction with submission of the AG, we deem it fit to admit the writ appeals and grant the interim stay,” the bench said.