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TMI Blog2018 (12) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... ax 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 q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods were liable to suffer tax @ 4% together with 1% cess. Thus, on such value, the assessee was liable to pay tax ₹ 17,868.95/-. While these calculations arise on the facts disclosed in the tax invoice, however, the seller M/s Tata Teleservices Ltd., Lucknow had charged tax @ 5% on the total invoice amount including the discount availed by the assessee on such purchase. The amount of discount being ₹ 17,99,385/-, the total sale price on which the tax @ 5% was charged by that seller came to ₹ 21,56,764/-. Thus, the assessee had been charged and he had paid tax of ₹ 1,07,838.41/-, as mentioned in the tax invoice itself. 6. From the above, it is clear that, there is no dispute between the parties as to the ide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade by the purchasing dealer, so long as it is not disputed that the I.T.C. being claimed is with respect to the same goods and it had not been passed on to the purchaser, the revenue authorities acted wholly contrary to law in reversing the I.T.C. In this regard, reliance has been placed on the provision of Section 13(1)(a) [table entry 1(1)] of the U.P. VAT Act, 2008 to submit, the assessee was entitled to I.T.C. on full amount of input tax paid. It is thus submitted, for the purpose of claiming I.T.C., it is not relevant what was the exact rate of tax payable or chargeable as per the scheduled rates on the goods purchased by the dealer but under the value added scheme of taxation, it would remain relevant what amount of tax had actually ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee to utilize that amount against tax payable on sale of those goods. 14. Having heard learned counsel for the parties, it is seen that, in the first place, 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. 15. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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