Input tax credit should be claimed within the time limit of Section 19(11)

1. Petitioners are carrying on business in various goods and are registered dealers under the provisions of TN VAT Act. 2. Petitioners filed return and the same was not accepted by the Authorities on one ground or the other. 3. Thus, filed revised return rectifying the mistakes in the return already filed claiming Input Tax Credit. 4. The same was denied invoking the provisions of Section 19(11), which provides that if the registered dealers fail to claim the Input Tax Credit in respect of any transaction of taxable purchase in any month, shall make the claim before the end of the financial year or before ninety days from the date of purchase, whichever is later. 5. Petitioners does not prescribe the time limit for assessment but fixes time limit in an arbitrary manner. 6. Authority resisted the writ petitions contending that there is nothing unreasonable or arbitrary in prescribing the time limit for claiming Input Tax Credit in respect of any transaction of taxable purchase. Since intention of the Legislature is to avoid misuse and tax evasion. 7. If indefinite period is allowed, it is likely to be misused apart from the fact that after the lapse of long time, the related transactions cannot be verified. 8. Therefore, all the writ petitions are dismissed holding that Section 19(11) is a valid piece of legislation, cannot be struck down as being either unreasonable or discriminatory. 

Case Reference - Usa Agencies vs The Commercial Tax Officer.