ARUN MOTORS Vs. COMMISSIONER OF COMMERCIAL TAX

JUDGEMENT

(1.) This petition has been preferred challenging order dated 13th January, 2010 made by Gujarat Value Added Tax Tribunal (the Tribunal) dealing with the application for stay filed by the petitioner alongwith Second Appeal No.958 of 2009.

(2.) Vide the order dated 23rd September, 2009 made by Deputy Sales Tax Commissioner, Division - I, Ahmedabad in appeal which came to be dismissed the order made by the Sales Tax officer on 06th March, 2007 came to be confirmed. The Sales Tax Officer in the assessment had worked out the liability to tax at a sum of Rs.9,99,732/- alongwith penalty under section 45(2)(a) of the Gujarat Sales Tax Act, 1969 (the Act) as well as penalty under section 45(2)(c) of the Act, both for a sum of Rs.14,99,600/- each. The total liability thus worked out was Rs.39,48,932/-. Petitioner assessee having paid a sum of Rs.3,81,417/-, the net amount which was outstanding when the appeal was preferred before Tribunal was Rs.35,67,515/-. After hearing learned advocate for the petitioner, the Tribunal has granted stay to the petitioner assessee provided that the petitioner assessee paid a sum of Rs.16.50 lakhs subject to the conditions stipulated in paragraph no.4 of the order impugned.

(3.) Learned advocate for the petitioner assailing the impugned order of the Tribunal submitted that the Tribunal has committed an error in considering the penalty amount in the total demand whereas the tax liability was only of a sum of Rs.9,99,732/- and, therefore, the petitioner could not have been directed to pay a sum of Rs.16.50 lakhs. That the petitioner has already paid Rs.3,81,417/- and thereafter deposited an amount of Rs.6,25,000/- in compliance with order dated 25th February, 2010 made by this Court. Therefore, an amount more than the total tax liability has been paid by the petitioner by now. In the circumstances, the impugned order of Tribunal deserves to be interfered with.