STATE OF GUJARAT Vs. NISHI COMMUNICATION

JUDGEMENT

(1.) THE present appeal has been preferred by the Revenue on the following substantial questions of law which are reproduced as under:

(2.) WE have heard Mr. Trivedi, learned AGP for the appellant.

(3.) THE facts show that the assessing authority made the assessment by demand of tax of Rs. 26,645/ -, interest of Rs. 19,184/ - and penalty of Rs. 68,744/ -. In the appeal, before the Deputy Commercial Commissioner, the demand of tax, interest and penalty was confirmed. In the further appeal before the Tribunal, it was found that as against the demand of tax of Rs. 26,645/ -, there is already credit balance of ITC of Rs. 28,117/ -, which was properly carried forward and if permitted to be adjusted, there would not be any liability to pay tax and consequently, the Tribunal found that the levy of interest and penalty cannot be sustained and therefore, deleted the same. Under the circumstances, the present appeal before this Court.