Input Vat Credit in Tamil Nadu

s s sadhique (business) (59 Points)

25 May 2010  

One of my dealer purchases goods locally (in Tamil Nadu) and selling it to other state. The materials purchased attracts 12.5% VAT and the accumulaed input VAT runs to lakhs of Rupees. As the dealer is selling the goods to Interstate he could not able to adjust the input VAT.  My questing is

1) Is it possible for the dealer to get refund of Input Vat Credit? if not what are the other source to adjust the input Vat

2) Is there  any possibility to ajdust it against CST payable?

Please help me.