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2015 (3) TMI 1251 - HC - VAT and Sales TaxWhether the Tribunal was justified in law holding that interest under section 54(1)(aa) of the Act was not admissible to the applicant as refund had become due to it not as a result of assessment order but as a result of an order passed in second appeal preferred by the applicant against the first appeal order confirming the assessment order passed under section 41 of the Act? - Held that - in such a situation, the assessee/dealer would be entitled to the interest under section 54(1)(aa) of the Act - appeal allowed - decided in favor of assessee.
Issues: Interpretation of the Gujarat Sales Tax Act - Admissibility of interest under section 54(1)(aa) for a dealer due to a refund.
Analysis: 1. The Gujarat Sales Tax Tribunal referred the matter to consider the substantial question of law regarding the admissibility of interest under section 54(1)(aa) of the Act to the dealer. The main issue was whether the interest was due to the dealer as a result of an assessment order or due to an order passed in a second appeal against the assessment order. 2. The Tribunal, in its decision, initially relied on a previous case of M/s Gayatri Tiles, where it held that interest under section 54(1)(aa) was not admissible to the dealer in a similar situation. However, a subsequent case of M/s Saurashtra Chemicals Limited took a contrary view, stating that the dealer would be entitled to the interest even in such circumstances. This view was further confirmed by a Division Bench of the High Court in the case of State of Gujarat Vs. Doshi Printing Press. 3. The High Court, after considering the conflicting decisions, held that the earlier decision in the case of M/s Gayatri Tiles was no longer valid law. The Court relied on the decision in the case of Doshi Printing Press, which confirmed the view taken in the case of M/s Saurashtra Chemicals Limited. Consequently, the Court ruled in favor of the applicant dealer, stating that they were entitled to the interest under section 54(1)(aa) of the Act, overturning the Tribunal's decision based on the outdated precedent.
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