SHAKTIRAJ METAL (P.) LTD. Vs. STATE OF GUJARAT

JUDGEMENT

(1.) PRESENT Tax Appeal is preferred against the order of the Gujarat Value Added Tax Tribunal ("the Tribunal" for short) dated 11.9.2013. The appellant was carrying on business of trading in aluminum, iron and steel items and scrap thereof. The appellant had worked out output tax on sales made within the State of Gujarat and sales outside the State. Some adjustments were done on output tax liability against input tax credit made available to the appellant. Assessment order was passed on 29.3.2011 by the Assessing Officer disallowing certain claims of the appellant for input tax credit on the ground that vendor's registration certificates were cancelled ab initio. He was also held liable to pay certain amount of tax without penalty and interest.

(2.) FIRST Appeal was preferred before the Deputy Commissioner of Commercial Tax. Deputy Commissioner vide order dated 29.9.2011 dismissed the appeal for non -payment of a sum of Rs. 10 lakh by way of pre -deposit. The tribunal passed the order directing the appellant to pay 20% of the tax amount which would come to Rs. 1,79 lakhs (rounded off) within one month from the date of said order land granted stay against recovery of outstanding demands on condition of such deposit till the final disposal of the appeal.

(3.) ON thus hearing both the sides and on considering the facts what emerges is, after the order of assessment when the challenge was made before the Deputy Commissioner in the First Appeal, the Deputy Commissioner directed pre -deposit for sum of Rs. 10 lakh. Such order was challenged before the Tribunal by the present appellant. The Tribunal though had directed the appellant to pay 20% of the tax amount making such sum to be Rs. 1.79 lakhs (rounded off) and the same was directed to be paid within a period of 30 days, however, curiously thereafter, without any request from either sides and also without reasonings, the Tribunal also directed the registry to place concerned matter along with the hearing of other group and disposed of the matter on merits. Tribunal thus has chosen to by pass the first appellate authority as is noticed in many other matters.