ITC cannot be denied for charge by seller at Higher than specified rate

Visteon Automotive Systems Pvt. Ltd. Vs Deputy Commissioner (Madras High Court) The issue under consideration is whether the respondent was justified in directing the petitioner to reverse the input tax credit availed on capital goods in excess of 4% vide the impugned order? In the present case, the petitioner had purchased “capital goods” for manufacturing purpose and availed input tax credit in terms of Section 19(3) of the said Act. As per Entry 25, Part B to the I schedule of the said Act, the ‘capital goods’ are liable to VAT at 4%. However, the dealer who sold the “capi...