DECO LIGHT CERAMICS LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) All these appeals concern the same appellant and pertain to the disputed valued added tax and central sales tax for two assessment years 2008-2009 and 2009-2010. The appeals concern the question of pre-deposit condition imposed by the VAT Tribunal which, upon assessee failing to satisfy, the appeals before the Tribunal came to be dismissed.

(2.) Having heard learned counsel for the parties and having perused documents on record, we gather that the Assessing Officer had in the orders of assessment found that under Gujarat Value Added Tax Act, the assessee has to be granted refund of Rs.14,42,673.00 under Central Sales Tax Act, however, he raised total demand of Rs.14,68,96,528.00. This of course, included interest and penalty. Excluding interest and penalty, the principal tax demand was Rs.7,13,08,994.00. When the assessee preferred appeals, the appellate authority imposed the condition of pre-deposit of 20% of the total tax demand inclusive of penalty and interest. Against this order, the assessee had approached the Tribunal, which confirmed the condition and as noted above, upon failure of the assessee to fulfil the same, dismissed the same.

(3.) In background of such facts, counsel for the appellant has submitted before us that the entire tax liability arose on account of failure on the part of the assessee to produce necessary forms pointing out that the part of sales were branch transfer sales, part were inter-state sales and part were export sales. He submitted that if the assessee had produced such forms, the tax liability would have become nil or virtually nil. He therefore, submitted that the imposition of condition of 20% of pre-deposit inclusive of interest and penalty at the first appellate stage was improper.