VAT ITC Denied on Zero Rated Sales: Madras HC Remits to Issue Fresh Order quashing Reassessment Order

The Madras High Court quashed a VAT reassessment order that denied Input Tax Credit (ITC) on zero-rated sales and remitted the case for reconsideration. The court found the reassessment flawed, stating that the relevant provisions of the VAT Act were not properly applied. The case emphasizes the importance of proper consideration of VAT credits in tax reassessments, ensuring that businesses can claim eligible credits for zero-rated sales.