MANIAC Vs. STATE OF GUJARAT

JUDGEMENT

(1.) Being aggrieved by the decision of The Gujarat Value Added Tax Tribunal in Second Appeal No. 151 of 2021 under the Central Sales Tax Act, 1956 delivered on 22/3/2022, this Tax Appeal has been preferred under Sec. 78 of the Gujarat Value Added Tax Act, 2003.

(2.) The appellant is an HUF having the place of business at Gandhinagar. He was engaged in the business of trading electronic items such as mobiles phones, computers, etc.

(3.) The search proceedings were conducted at the premises of the appellant on 30/10/2014 which continued till 3/11/2014. No unaccounted stock or sale/purchase was found, according to the appellant. However an issue was raised with respect of classification of sales made through websites as local sales even though the ultimate customer was located outside the State of Gujarat. For inter- State sales, input tax credit was required to be partially reduced because of the notification issued under Sec. 11(6) of the Vat Act. Therefore, provisional assessment order was passed under Sec. 9(2) of the CST Act read with Sec. 33 of the Vat Act for the year 2014-15 raising demand against the Appellant by estimating turnover on the strength of previous year's books of account.