JYOT OVERSEAS P LTD Vs. STATE OF GUJARAT

JUDGEMENT

(1.) This appeal is filed by the assessee to challenge the judgment of the Value Added Tax Tribunal ('the Tribunal' for short) dated 6-9-2012. At the time of admission of appeal, the following substantial questions of law were framed :

(2.) Brief facts are as under :

(3.) First of the three questions framed refers to simultaneous penalties being imposed under sub-section (7) and sub-section (12) of Section 34 of the VAT Act. The second and third questions pertain to the correctness of the judgment of the Tribunal imposing penalty by reducing the same to 20% of the amount of tax involved. At the outset, learned advocate for the appellant did not press question no. 1 and the same is therefore disposed of without answering it. He, however, argued at length on questions nos. 2 and Taking us through the documents on record and in particular the judgment of the Tribunal under challenge, he submitted that there were strong grounds suggesting that non-payment of tax was a pure bona fide error on the part of the assessee. The entire issue was in a flux. Major amendments were made in the law only recently. Other dealers who were purchasing Isabgul and selling it from within the State after processing, admittedly did not have any tax liability. The assessee bona fide believing himself at par with such dealers did not pay tax. The fact that the provisional order of assessment did not raise any demand of tax on such sales, would demonstrate that even the authorities were not clear on the tax liability. Counsel also relied on the letter dated 22-5-2006 written by the assessee to the Commissioner seeking clarification on the question of tax liability.