M/S R.K. Distributors vs. Commissioner Commercial Tax U.P.
Held
The Court held that ITC is admissible on the full amount of tax actually paid by the purchasing dealer, irrespective of whether it was in excess of the scheduled rate. The revenue authorities cannot restrict the ITC claim based solely on the excess tax realized by the seller.
Facts
The assessee claimed Input Tax Credit (ITC) of Rs. 1,07,838.41 on SIM card purchases, which was higher than the tax payable (Rs. 17,868.95) due to the seller charging 5% tax instead of the applicable 4% plus 1% cess. The tax authorities reversed the excess ITC.
Key Issues
Whether ITC can be rejected if the tax paid on purchase is higher than the tax payable on such purchase? Whether the definition of 'input tax' includes tax actually paid, even if in excess of the scheduled rate?
Sections Cited
Section 13(1)(a), Section 2(p)
AI-generated summary — verify with the full judgment below
Court No. - 7 Case :- SALES/TRADE TAX REVISION No. - 351 of 2018 Applicant :- M/S R.K. Distributors Opposite Party :- Commissioner Commercial Tax U.P. Counsel for Applicant :- Rishi Raj Kapoor Counsel for Opposite Party :- C.S.C. Hon'ble Saumitra Dayal Singh,J.
Heard Shri Rishi Raj Kapoor, learned counsel for the applicant and Sri Jagdish Mishra, learned Standing Counsel.
The present revision has been filed by the assessee for the A.Y. 2011-12, under the Uttar Pradesh Value Added Tax Act, 2008, hereinafter referred to as the Act. It arises from the decision 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.
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 ?"
With the consent of the parties, the present revision is being decided, at the f
The judgment continues below.
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