9911796707
TMI Blog2018 (12) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... cision 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 SIM cards of value Rs. 3,57,379/- from the service prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 purchasing dealer. Even if it is assumed that excess payment on tax may hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te, 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 may not give rise to any I.T.C., and in any case, it may not be open to the assessee to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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