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2013 (6) TMI 385 - HC - VAT and Sales TaxRefund claim rejected - discrepancy in the purchase invoice supplied by the petitioner containing incomplete information on the rate of tax and the actual tax payable - proposal to restrict the petitioner's claim of ITC to 4% on the purchase of capital goods that have been purchased on payment of 12.5% - Tamil Nadu Value Added Tax Act - Held that:- It is admitted that the petitioner had in fact paid the tax at 12.5% which could not be refuted by the seller. If there had been a charging of tax by the seller when effected the sale to the purchaser at the rate over and above what is payable under the TNVAT Act, all that the Revenue could do is to proceed against the seller of the goods for charging the purchaser at a rate not legally sustainable. Do not agree with the contention of the Additional Government Pleader, who overlooks the fundamental fact of difference between the earlier Act and the present Act that when the ITC claim clearly shows that the purchaser had paid the tax at 12.5%, the question of the seller coming forward before the authority concerned as regards the collection of tax or as to the proof on the passing of liability, does not arise. Additional Government Pleader contention that section 18(2) does not have any restrictive words to mean that the "dealer" could refer only a purchaser to grant a refund is to be rejected as this line of contention outright, as given the fact that the zero rating of tax is as per Section 18 of the TNVAT Act and the same is only at the hands of a purchasing dealer of goods and not at the hands of the seller, who sells the capital goods, the acceptance of the stand of the Department would only amount to either ignoring Section 18 or cutting down the width of Section 18, for that matter, even to overlook Section 19 - thus claim of the petitioner as regards the refund of tax without any reduction has to be accepted.
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