2026 (7) TMI 1438

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....and the learned Government Pleader for Commercial Tax appearing for respondent Nos.1 to 4. 2. The petitioner deals in Steel and Cement products. In the course of his business, he has purchased various goods and had subsequently resold the same. The petitioner while purchasing the goods is said to have paid his seller tax at the rate of 14 ½ % and sought set off guantum of tax paid as Input Tax Credit (ITC) under the APVAT Act. The period of this set of is 2016-2017 and 2017-2018 (till June, 2017). 3. This claim of the petitioner was rejected by the assessing authority on the ground that the petitioner had subsequently received discounts on the purchase price and as such was not entitled to claim Input Tax Credit at the rate of ....

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.... For example: if 100 TVs are sold @ Rs.10,000/- each, amounting to Rs.10,00,000/-, the original tax charged @ 12.5% is Rs.1,25,000/-. If the discount of 10% is offered subsequently based on fresh purchases, the selling dealer can pass on the benefit of Rs.1,00,000/- for the price without disturbing the tax component of Rs.1,25,000/-. The buying dealer will not alter the input tax credit already claimed amounting to Rs.1,25,000/-. The selling VAT dealer will not claim reduction in output tax liability consequent to lowered price offered." 6. Learned counsel for the petitioner would contend that this aspect has not been considered by the assessing authority and the order of assessment is in violation of the aforesaid G.O issued by ....