Disposed¶29

The State of Tamil Nadu v. Thangam Metal Cans Private Limited

Madras HC25 Mar 2025WA/314/2025

Case brief

AI extract

What is this about?

TNVAT Act 2006 Section 19(2)(v) ITC reversal; writ appeals WA 314, 317, 379 of 2025 disposed subject to pending SLP (C) Diary No.5815 of 2023 (State of Tamil Nadu vs. Everest Industries Limited) before the Apex Court; reliance on learned Single Judge decision Everest Industries vs. State of Tamil Nadu (100 VST 158); Revenue appeal W.A.No.1260 of 2017 dismissed; Madras High Court; Clause 15 Letters Patent; Commercial Tax Officer Tondiarpet; Thangam Metal Cans; Thangam Tin Cans; Ariba Plasti Cans; no costs; interim applications closed.

What did the court decide?

No substantive relief to either side; appeals disposed of subject to the outcome of the pending SLP (C) Diary No.5815 of 2023, with the Assessing Authority to act per the Apex Court's decision if the Revenue succeeds; no order as to costs; interim applications closed. ¶29

The State of Tamil Nadu Vs Thangam Metal Cans Private Limited — Madras HC (2025) — LawSathi Research

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the matters concern reversal of Input Tax Credit (ITC) in terms of Section 19(2)(v) of the TNVAT Act, 2006, as raised in these writ appeals.

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Court's answer

The writ appeals are disposed of subject to the outcome of the pending Special Leave Petition in State of Tamil Nadu and another vs. Everest Industries Limited [SLP (C) Diary No.5815 of 2023], the issue being covered by the learned Single Judge decision in Everest Industries.

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Ratio / Principle

If the Revenue succeeds before the Apex Court in the pending Special Leave Petition, the Assessing Authority will take further steps in line with the decision of the Apex Court.

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Key takeaways

There shall be no order as to costs, and consequently the interim applications (CMPs) stand closed.ratio¶29

Detailed headnote1 paragraphs

Division Bench of the High Court of Judicature at Madras (K.R. Shriram, Chief Justice, author; Mohammed Shaffiq, J.) disposed of three Revenue writ appeals, WA Nos.314, 317 and 379 of 2025, filed under Clause 15 of the Letters Patent against the order passed in W.P.Nos.4029, 4030 and 4031 of 2025 dated 08.07.2021. The issue concerned reversal of ITC in terms of Section 19(2)(v) of the TNVAT Act, 2006. Noting that the issue is covered by the learned Single Judge decision in Everest Industries vs. State of Tamil Nadu (100 VST 158), against whose order the Revenue's appeal in W.A.No.1260 of 2017 stood dismissed, and that a Special Leave Petition is pending in the Apex Court, the Court disposed of the appeals subject to the outcome of State of Tamil Nadu and another vs. Everest Industries Limited [SLP (C) Diary No.5815 of 2023], directing that if the Revenue succeeds before the Apex Court, the Assessing Authority will take further steps in line with that decision. No order as to costs; interim applications closed.

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WA Nos.314, 317 and 379 of 2025

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 25.03.2025

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CORAM

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THE HON'BLE MR.K.R.SHRIRAM, CHIEF JUSTICE

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AND

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THE HON'BLE MR.JUSTICE MOHAMMED SHAFFIQ

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WA Nos.314, 317 and 379 of 2025 and CMP Nos.2494, 2500, 2501,3068 and 3069 of 2025

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The State of Tamil Nadu, Rep by its Secretary, Commercial Taxes Department, Fort St. George, Chennai-600 009.

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The Commercial Tax Officer, Tondiarpet Assessment Circle, Chennai-600 081. .. Appellants in all the appeals

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-vs-

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M/s Thangam Metal Cans Private Limited, Rep. by its Managing Director, 17 & 26, T.H.Road, Tondiarpet, Chennai-600 081. .. Respondent in W.A.No.314 of 2025

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M/s Thangam Tin Cans Private Limited, Rep by its Managing Director, 21, T.H.Road, Tondiarpet, Chennai-600 081. .. Respondent in W.A.No.317 of 2025

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Page 1 of 4

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https://www.mhc.tn.gov.in/judis

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WA Nos.314, 317 and 379 of 2025

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M/s Ariba Plasti Cans, Rep by its Partner, 23, T.H.Road, Tondiarpet, Chennai-600 081. ... Respondent in W.A.No.379 of 2025

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Prayer: Appeals filed under Clause 15 of Letters Patent against the order passed in W.P.Nos.4029, 4030 and 4031 of 2025 dated 08.07.2021 on the file of this Court.

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For Appellants : Mr.C.Harsha Raj Spl. Government Pleader for Taxes

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COMMON JUDGMENT

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(Judgment of the Court was delivered by the Hon'ble Chief Justice)

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Sri.Harsha Raj states that the issue in these writ appeals pertains to reversal of ITC in terms of Section 19(2)(v) of TNVAT Act, 2006 and the same is covered by a decision of a learned Single Judge in the case of Everest Industries vs. State of Tamil Nadu (100 VST 158) . He states that the appeal filed by the Revenue against the order of learned Single Judge in W.A.No.1260 of 2017 has also been dismissed.

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Page 2 of 4

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https://www.mhc.tn.gov.in/judis

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WA Nos.314, 317 and 379 of 2025

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Sri.Harsha Raj states that there is a Special Leave Petition pending

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in the Apex Court. Since the issue is covered, Sri.Harsha Raj states that the appeals be disposed subject to the outcome of the Special Leave Petition in the case of State of Tamil Nadu and another vs. Everest Industries Limited [SLP (C) Diary No.5815 of 2023] . If Revenue succeeds before the Apex Court, then, the Assessing Authority will take further steps in line with the decision of the Apex Court.

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With the above, appeals are disposed of. There shall be no order as to costs. Consequently, the interim applications stand closed.

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(K.R.SHRIRAM, CJ.) (MOHAMMED SHAFFIQ, J.)

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25.03.2025

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Index : Yes/No Neutral Citation : Yes/No

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sra

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