STATE OF GUJARAT Vs. JWELLY TEA CO.

JUDGEMENT

(1.) The appellant State of Gujarat has challenged the order dated 25th March, 2015 passed by the Gujarat Value Added Tax Tribunal at Ahmedabad (hereinafter referred to as 'the Tribunal') in Second Appeal No.1056 of 2014 by proposing the following two questions, stated to be substantial questions of law:

(2.) The facts giving rise to the present appeal are that M/s Jwelly Tea Co., an HUF, is a dealer duly registered under the provisions of the Gujarat Sales Tax Act, 1969. In respect of outstanding dues of the HUF, an order of attachment came to be passed by the Commercial Tax Officer under section 45 of the Gujarat Value Added Tax, 2003 (hereinafter referred to as 'the GVAT Act') attaching the properties of Shilpaben P Shah, wife of the karta of the HUF. The assessee carried the matter in appeal before the first appellate authority, which dismissed the appeal on merits. The assessee carried the matter in second appeal before the Tribunal and succeeded.

(3.) Ms. Maithili Mehta, learned Assistant Government Pleader, assailed the impugned order by submitting that the Tribunal has erred in not appreciating that the liability of the members of the Hindu Undivided Family is joint and several. Accordingly, even if the property belongs to a member and not to the HUF, the same can be attached towards the dues of the HUF inasmuch as each member of the HUF would be liable for its dues. Reference was made to section 57 of the GVAT Act which makes special provision regarding liability to pay tax in certain cases and more particularly, sub-section (2) thereof, as well as to section 58 thereof, which makes provision for liability in other cases and more particularly to sub-section (1) thereof, to submit that in the light of the provisions of section 57 and 58 of the Act, the Commercial Tax Officer was justified in attaching the property under section 45 of the GVAT Act.