STATE OF GUJARAT Vs. MUKTI EXPORTS PRIVATE LTD.

JUDGEMENT

(1.) PRESENT tax appeal has been preferred by the appellant -State of Gujarat through the Commissioner of Commercial Taxes, Ahmedabad, against the impugned judgment and order dated January 22, 2013, passed by the learned Gujarat Value Added Tax Tribunal in Second Appeal No. 139 of 2011, by which, the learned Tribunal has allowed the said appeal preferred by the respondent herein holding that the respondent -dealer shall be entitled to interest on provisionally granted refund of Rs. 2,74,253 at the rate of six per cent per annum under section 38(2) of the Gujarat Value Added Tax Act, 2003 (hereinafter referred to as, "the Act"), subject to conditions that if the dealer has utilized carried forward tax credit while filing its return for the next period and reduced its tax liability, in that case, its claim for interest on such refund would not be allowable. The facts leading to the present tax appeal in nutshell are as under:

(2.) SHRI Gandhi, learned Assistant Government Pleader, has vehemently submitted that the learned Tribunal has materially erred in holding that the dealer shall be entitled to the interest on provisionally granted refund of Rs. 2,74,253. It is submitted that learned Tribunal has misinterpreted section 38(2) of the Act. It is submitted that interest as provided under section 38(2) of the Act shall not be payable on provisional refund. It is submitted that considering section 38(2) of the Act the dealer is not entitled to interest on the provisional refund available on provisional assessment. It is further submitted by Shri Gandhi, learned Assistant Government Pleader, that section 38 does not speak of "interest on provisional refund".

(3.) MAKING above submissions and relying upon the above decision, it is requested to admit/allow the present appeal.