STATE OF GUJARAT Vs. KAIRAVI STEEL

JUDGEMENT

(1.) By way of the present appeal filed under Section 78 of the Gujarat Value Added Tax Act, 2003, the Commissioner of Commercial Tax has challenged the judgement and order dated 15.10.2014 passed by the Gujarat Value Added Tax Tribunal, Ahmedabad in Second Appeal No. 685 of 2014, by which it has been held that the respondent assessee cannot be held to pay the interest and penalty on the tax levied since the assessee has already paid excess Input Tax Credit.

(2.) The brief facts of the case arise from the record are as under:

(3.) Learned AGP Ms. Vacha Desai fairly conceded that the decision delivered by the Tribunal in case of Cosmos International Ltd. V. State of Gujarat was challenged by the State of Gujarat by way of Tax Appeal No. 857 of 2013. The said tax appeal has been finally heard and decided by the Division Bench of this Court along with allied matters and the view taken by the Tribunal with regard to granting deduction of excess Input Tax levied and if the assessee is entitled to pay the additional tax and the same is adjusted from the excess credit, there should be no levi of interest and penalty from the assessee.