2015 (6) TMI 228 - HC - VAT and Sales Tax

Interest on refund claim - Whether the learned Tribunal has erred in holding that the dealer is entitled to interest under Section 54(1)(aa) of the Gujarat Sales Tax Act on refund arising from the appellate order - held that - Dealer is entitled to interest under Section 54(1)(aa) of the Gujarat Sales Tax Act on refund arising from the appellate order - Decision in the case of State of Gujarat Vs. Doshi Printing Press 2015 (3) TMI 211 - GUJARAT HIGH COURT followed - Decided against Revenue. Whether the learned Tribunal has erred in deleting levy of penalty under Section 45(2)(c) - Held that - Following decision of Banu Hasim Vs. State of Gujarat reported in 2012 (7) TMI 873 - GUJARAT HIGH COURT case decided against Revenue.

Summary

Issues:
1. Entitlement to interest under Section 54(1)(aa) on refund arising from appellate order.
2. Deletion of penalty under Section 45(2)(c) of the Act.

Entitlement to Interest under Section 54(1)(aa):
The appellant, the State of Gujarat-revenue, challenged the judgment of the Gujarat Value Added Tax Tribunal regarding the entitlement to interest under Section 54(1)(aa) on a refund arising from an appellate order. The High Court referred to the decision in the case of State of Gujarat Vs. Doshi Printing Press and other related cases. The Division Bench confirmed that the dealer is entitled to interest under Section 54(1)(aa) of the Gujarat Sales Tax Act on such refunds. Citing previous rulings and considering relevant case law, the High Court dismissed the Tax Appeal on this issue, following the precedent set in the mentioned cases.

Deletion of Penalty under Section 45(2)(c) of the Act:
The second issue involved the deletion of the penalty under Section 45(2)(c) of the Act by the Tribunal. The High Court noted a binding decision in the case of Banu Hasim Vs. State of Gujarat, where the Division Bench had held against the revenue on a similar matter. Consequently, the High Court found that the issue of penalty deletion was also to be decided against the revenue. Following the precedent set in the Banu Hasim case, the High Court dismissed the Tax Appeal on this question as well.

Conclusion:
The High Court concluded that no substantial question of law arose in the present Tax Appeal based on the precedents and reasons provided in the judgment. Therefore, the Tax Appeal was deemed to be dismissed. Additionally, a related Civil Application was disposed of in light of the main Tax Appeal's decision.