DEPB credit denied under TNVAT

The Madras High Court, by judgment dated 24 July 2026, dismissed the assessee's appeals and reaffirmed the earlier Division Bench ruling in Sha Kantilal Jayanthilal. 

The Court held that purchase of a DEPB licence does not entitle a dealer to input tax credit under Section 19 of the TNVAT Act, notwithstanding that a DEPB licence qualifies as "goods."