Reversal of ITC u/s 19(2)(v) TNVAT Act: Madras HC upholds Single bench’s Order Quashing Assessment,...

The Madras High Court has upheld a single bench's order that quashed an assessment order related to the reversal of Input Tax Credit (ITC) under the TNVAT Act. The court's decision was based on a prior ruling by the Division Bench in a similar case. While the court upheld the quashing of the assessment, it also placed a condition: if the Supreme Court reverses the earlier judgment, the assessing authority would be at liberty to revive the quashed assessment. This ruling provides temporary relief to the assessee but also acknowledges the pending legal proceedings at a higher level, creating a conditional and limited revival of the assessment.