2016 (1) TMI 996 - HC - VAT and Sales Tax

Purchase of light diesel oil by the assessee which was used in manufacture of taxable goods. The Department holds belief that such fuel is neither raw material nor consumable goods in manufacturing such items. - Held that - Mere pendency of the dispute by the Department before the Supreme Court would not permit us to hold back these proceedings. We are therefore not inclined to entertain this petition in which challenge to a judgment of the Tribunal where the Tribunal has merely followed the decision of the High Court. We also notice that the revenue implications in this petition is also not very high. - Petitions dismissed - Decided against the revenue.

Summary

The Gujarat High Court dismissed a petition challenging a Value Added Tax Tribunal order regarding the purchase of light diesel oil by an assessee for manufacturing taxable goods. The Tribunal's decision was based on a previous High Court judgment in favor of the assessee. The Department's appeal to the Supreme Court was pending, but the High Court did not see any error in the Tribunal's decision. The petition was dismissed as the Tribunal had followed the High Court's decision and the revenue implications were not significant.