2015 (9) TMI 207 - HC - VAT and Sales Tax

Levy of tax Validity of purchase Cancellation of Registration of seller It was submitted by petitioner that impugned order by which petitioner has been asked to pay tax under provisions of Gujarat Value Added Tax Act, 2003 wherein it is held that registration of those sellers from whom petitioner had purchased some goods had been cancelled and therefore, petitioner is liable to pay tax There is no discussion in order about genuineness of petitioner and his purchases and therefore, order is required to be quashed and set aside Held that - Assessing Officer has not properly dealt with case and ought to have discussed and appreciated material produced by petitioner on record True that there is alternative remedy in form of statutory appeal However, we are of opinion that in absence of sufficient reasons assigned by Assessing Officer, order becomes vulnerable and therefore, requires to be quashed and set aside However, matter remanded to Assessing Officer for fresh consideration Decide in favour of Petitioner.

Issues:
1. Quashing of assessment order under VAT Act, 2003
2. Grant of input tax credit
3. Restraining recovery of amount
4. Contempt of court and breach of judicial discipline
5. Further relief as per justice of the case

Issue 1: Quashing of assessment order under VAT Act, 2003
The petitioner filed a petition under Article 226 seeking to quash the assessment order passed by the respondent under the VAT Act, 2003. The petitioner argued that the order demanded tax payment due to cancellation of registration of sellers from whom goods were purchased, without considering documentary evidence proving the purchases were from registered sellers. The High Court found that the Assessing Officer did not properly analyze the case and failed to discuss the material presented by the petitioner. Despite the availability of a statutory appeal, the High Court held that the order was vulnerable due to insufficient reasoning by the Assessing Officer and thus quashed the order.

Issue 2: Grant of input tax credit
The petitioner also requested the High Court to order the respondent to grant input tax credit under the VAT Act, 2003. The High Court did not delve into the specifics of this request in the judgment, indicating that the primary focus was on quashing the assessment order. Therefore, the judgment did not provide detailed analysis or ruling on the grant of input tax credit.

Issue 3: Restraining recovery of amount
The petitioner sought a restraint on the recovery of any amount pending the final disposal of the petition. The High Court did not explicitly address this issue in the judgment. However, the overall decision to quash the assessment order could indirectly impact the recovery of the amount demanded by the order until a fresh consideration by the Assessing Officer.

Issue 4: Contempt of court and breach of judicial discipline
The petitioner urged the High Court to award costs against the respondent for not following previous court decisions, amounting to contempt of court and breach of judicial discipline. While the judgment acknowledged the petitioner's argument, it did not provide a specific ruling or discussion on this issue. The focus remained on the quashing of the assessment order and remanding the matter for fresh consideration.

Issue 5: Further relief as per justice of the case
Lastly, the petitioner requested the High Court to grant further relief as per the justice of the case. The judgment did not elaborate on the specific relief sought beyond quashing the assessment order and remanding the matter for reconsideration by the Assessing Officer. The High Court allowed the petition, quashed the order, and remanded the case for fresh consideration, without mentioning any additional relief granted.

In conclusion, the High Court's judgment primarily focused on the quashing of the assessment order under the VAT Act, 2003, due to the Assessing Officer's failure to provide sufficient reasoning and properly analyze the case. The court remanded the matter for fresh consideration by the Assessing Officer, emphasizing the importance of a thorough examination of the documentary evidence and relevant judgments. The judgment did not extensively address the other issues raised by the petitioner, such as the grant of input tax credit, restraining recovery of amounts, contempt of court, or additional relief, as the main decision revolved around setting aside the assessment order and ensuring a fair reconsideration of the case.

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