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2014 (9) TMI 1258 - ALLAHABAD HIGH COURTFixation and estimation of turn over of purchase and sale of rice - levy of tax on purchase as well as on the alleged sale of rice without any observation for giving benefit of Section 13 of the Act - HELD THAT:- The turnover of purchase so fixed comes to about 2.5 times of the amount mentioned in the loose parcha which is proportionate to the period for which the business has been done by the applicant. Thus, there is no substance in the submissions of the learned counsel for the applicant, that the purchase turn over determined by the authorities is excessive - As per Section 4 of the Act, the tax is payable on the taxable turnover of sale of goods under the Act. Rice is a commodity which is specified in Entry-52 of Part-A of Schedule-II of the Act, and is liable to tax at the rate of 4%. Section 13 of the Act, provides that a credit of the amount as input tax credit to the extent of full amount of tax on purchases shall be allowed, if the purchased goods are resold. Since, the turnover of purchase and sale in respect of the same rice has been determined and as such if the applicant first deposits the amount of tax determined on purchases of goods then in that event, an input tax credit may be allowed to him against the liability to tax on the sale turnover of such rice. This credit shall be available to the applicant as per provisions of Section 13 read with Section 2(p) of the Act. This revision is partly allowed - the matter is remanded back to the assessing authority to recompute the amount of tax and raise a fresh demand against the applicant.
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