2018 (12) TMI 422

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....rred to as the Act. It arises from the decision of the Commercial Tax Tribunal, Allahabad, dated 25.09.2018 passed in Second Appeal No. 131 of 2017. By that decision, the Tribunal has upheld the order passed by the lower authorities and thus, confirmed the reversal of Input Tax Credit (I.T.C.) made against the assessee. 3. The revision has been heard on the following question of law: "Whether the I.T.C. claimed by the assessee could have been rejected to the extent of Rs. 89,969.46/- treating the same to be excess tax paid on purchase in comparison to the tax payable on such purchase ?" 4. With the consent of the parties, the present revision is being decided, at the fresh stage itself. 5. Briefly, the assessee purchased S....

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....Rs. 4,83,815/- being Rs. 17,868.95/-, the assessee had claimed I.T.C. of Rs. 1,07,838.41/-, resulting in refundable amount to the assessee. 9. The Assessing Authority had reversed the I.T.C. claimed by the assessee on the reasoning that the rate of tax on the commodity being 5% only, the amount of Rs. 1,07,838.41/- represents 30% tax on the goods purchased by the assessee. Therefore, the benefit of I.T.C. has been confined in proportion to 5% tax on the discounted purchase value on the goods. The balance (being 25%), has been reversed. 10. Learned counsel for the assessee submits, under the Act, there is no provision or principle existing, as may allow the Assessing Authority to reverse any amount of tax actually paid by the purchasin....

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....n to a registered dealer who has purchased any goods from within the State, means the aggregate of the amounts of tax,- (i) paid or payable by such registered dealer to the registered selling dealer of such goods in respect of purchase of such goods; and (ii) paid directly to the State Government by the purchasing dealer himself in respect of purchase of such goods where such purchasing dealer is liable to pay tax under this Act on the turnover of purchase of such goods." 13. Then referring to Section 4(1)(a) of the Act, it has been submitted that the SIM cards were taxable @ 5% only (4% + 1%). Therefore, any amount that may have been paid by the assessee on purchase of SIM cards in excess of 5% of actual purchase value....