PSL LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) THIS appeal under section 78 of the Gujarat Value Added Tax Act, 2003 is directed against the order dated 16.4.2015 passed by the Gujarat Value Added Tax Tribunal (hereinafter referred to as "the Tribunal") in Second Appeal No. 972 of 2014 by proposing the following questions stated to be substantial questions of law: - -

(2.) THE facts stated briefly are that the appellant was assessed for the year 2000 -2001 on 31.3.2005. Against the assessment framed by the Assessing Officer, the appellant preferred an appeal before the Joint Commissioner of Commercial Tax, Appeals -3, which came to be dismissed by an order dated 11.8.2005. The appellant carried the matter in second appeal before the Tribunal being S.A. No. 705 of 2008. The Tribunal remanded the matter to the first appellate authority to decide the matter in the light of the discussion made in the judgment which was regarding the issue of works contract in which the material transferred was less than 15% of the inter -State works contract. While deciding the first appeal on remand, the first appellate authority considered the said issue and reduced the tax demand. However, the penalty in proportion to the tax demand came to be retained and the interest was re -calculated and was levied for a period of 36 months on the amount of tax dues. The appellant had raised a contention with regard to levy of interest and penalty; however, the same came to be rejected. Being aggrieved, the appellant carried the matter in appeal before the Tribunal. By the impugned order, the Tribunal has partly allowed the appeal by holding that the appellant is liable to pay interest under section 47(4A)(b) of the Gujarat Sales Tax Act, 1969 (hereinafter referred to as "the Act"), however, the penalty levied under section 45(6) of the said Act came to be deleted.

(3.) THIS court has considered the submissions advanced by the learned counsel for the appellant and has perused the impugned order passed by the Tribunal as well as the orders passed by the lower authorities.