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2018 (12) TMI 422 - HC - VAT and Sales TaxInput tax credit - Denial of credit treating the same to be excess tax paid on purchase in comparison to the tax payable on such purchase - Held that:- It is undisputed that the amount with respect to which the I.T.C. being claimed is admittedly the amount paid by the assessee by way of tax on purchase of goods that have given rise to the dispute - The language of Section 13(1)(a) [table entry 1(1)] read with Section 2(p) of the Act, is sufficiently clear and provides that the input tax credit would be referable to the entire amount of tax i.e. the aggregate amount of tax paid or payable, in respect of the purchase of goods. Insofar as the legislature has itself contemplated that amount paid, may itself give rise to input tax, there is no room to enter into any exercise of interpretation to restrict the plain meaning of the word 'paid'. While, it is undisputed that the sale was made by the assessee within the State, the reasoning offered by the authorities based solely on the excess realization of tax made by the seller cannot be sustained. Merely because the selling dealer may have acted with abundant caution in realizing the higher amount to avoid any litigation with the State authorities and in absence of any allegation of the assessee had passed on the liability of higher tax paid, the question of law raised in the present case is answered in the negative i.e. in favour of the assessee and against the revenue - revision allowed.
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