STATE OF GUJARAT Vs. HITARTH CORPORATION

JUDGEMENT

(1.) These appeals arise in common background. We may record facts from Tax Appeal No.836 of 2017.

(2.) Department has challenged the judgment of the Value Added Tax Tribunal dated 08.02.2016, by which, the appeal of the assessee came to be allowed and penalty imposed by the adjudicating authority came to be deleted.

(3.) Materials on record would suggest that against the adjudicating authority's order, the department approached the Appellate Commissioner. The Appellate Commissioner imposed a certain requirement of predeposit as per the statutory provisions. Since the assessee did not fulfill this requirement, appeal was dismissed only on this ground. It was this order of the Commissioner which the assessee challenged before the Tribunal. In the course of hearing of the appeal, the Tribunal was informed that the assessee has deposited not only the predeposit amount but the entire principal tax with interest. The Tribunal thereupon proceeded to decide the legality of the penalty imposed by the adjudicating authority in the appeal before itself and after recording reasons, deleted such penalty.