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TMI Blog2018 (12) TMI 419X X X X Extracts X X X X X X X X Extracts X X X X ..... rchased the same at 20% and had sold it also at 20%. Later, the Commissioner had come out with a circular bearing No.43/2006, wherein specific items of paints taxable at 20% were enumerated. Later, a further circular was issued bearing No.52/2006 wherein 'synthetic enamel paints' were excluded. The general purpose of the amendment and the circulars would indicate that what was sought to be taxed at the higher rate were those items which are more expensive and not commonly used. The input tax credit can be only at the rate at which the commodity is taxed as per the Schedule to the Act. If there is tax payment in excess of the rate available in the Schedule, then necessarily such collection to that extent would be forfeited by the State a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding paints as a commodity taxable at 20%. The assessee submits that, admittedly, there was an anomaly insofar as the Department having come out with two circulars; one Circular No.43/2006 dated 27.11.2006 and the other Circular No.52/2006 dated 22.12.2006. The assessee having paid tax at the higher rate and also sold the products at the same rate and having not claimed any refund of the tax paid by it, they are entitled to input tax credit at the very same rate, is the contention. 3. We see from the assessment order that the assessee had claimed input tax credit on many commodities, namely white base, enamels, wood polish, thinner, CEM, wall putty, primer and white cement. The Assessing Officer (AO) declined input tax credit at the rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts arising in the above case there should be a different view taken from that of the Tribunal. There was definitely a doubt as to the rate of tax applicable to paints in general. Since it was included under a table appended to Section 6(1)(a) and levied tax at the higher rate of 20%, the dealers had purchased and collected tax also at the higher rate, since otherwise, they would not have had the opportunity to collect the tax at the said rate from the ultimate consumers. However, we find that not all items dealt with by the assessee-respondent can come under the definition of paints, even if we concede that there was a misunderstanding created among the dealers by including paints in general under the table to Section 6(1)(a). Of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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