2018 (12) TMI 419

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..... V K SHAMSUDHEEN, SR. GOVERNMENT PLEADER For The Respondent : ADV. SRI. T. M. SREEDHARAN (SR. ), SRI. M. B. PRAJITH, SRI. V. P. NARAYANAN AND SMT. DIVYA RAVINDRAN ORDER Vinod Chandran, J. The State is before this Court challenging the order of the Kerala Value Added Tax Appellate Tribunal on the following questions of law:- "(1) Whether the Tribunal was right in having allowe....

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....y insofar as the Department having come out with two circulars; one Circular No.43/2006 dated 27.11.2006 and the other Circular No.52/2006 dated 22.12.2006. The assessee having paid tax at the higher rate and also sold the products at the same rate and having not claimed any refund of the tax paid by it, they are entitled to input tax credit at the very same rate, is the contention. 3. We see f....

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.... also at 20%. Later, the Commissioner had come out with a circular bearing No.43/2006, wherein specific items of paints taxable at 20% were enumerated. Later, a further circular was issued bearing No.52/2006 wherein 'synthetic enamel paints' were excluded. The general purpose of the amendment and the circulars would indicate that what was sought to be taxed at the higher rate were those it....

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....and levied tax at the higher rate of 20%, the dealers had purchased and collected tax also at the higher rate, since otherwise, they would not have had the opportunity to collect the tax at the said rate from the ultimate consumers. However, we find that not all items dealt with by the assessee-respondent can come under the definition of paints, even if we concede that there was a misunderstanding....