2019 (8) TMI 174 - HC - VAT and Sales Tax

Restoration of registration - cancellation of registration ab-initio from 09.05.2011 - HELD THAT - All that has been done by the Tribunal is to remit the matter to the Registering Authority for the purpose of verification whether the appellant had submitted all the returns and paid tax dues. It appears that the order came to be passed by the Tribunal in wake of the fact that the registration certificates came to be cancelled with effect from 31.03.2014. For the purpose of necessary verification, the matters came to be remitted to the Registering Authority. There is no good reason to interfere with the order passed by the Tribunal - appeal dismissed.

Summary

Issues:
Appeal under Section 78 of the Gujarat Value Added Tax Act, 2003 challenging the order of the Gujarat Value Added Tax Tribunal regarding restoration of registration certificates and verification of returns and tax dues.

Analysis:
The Tax Appeal was filed by the State of Gujarat against the order of the Gujarat Value Added Tax Tribunal, which remitted the matter to the Registering Authority for verification. The appellant raised two substantial questions of law regarding the Tribunal's decision. The Tribunal allowed both second appeals and directed the Registering Authority to verify if the appellant had submitted all returns and paid tax dues. The Tribunal observed that the registrations were canceled due to the appellant's failure to furnish returns for three consecutive periods. The Tribunal's order quashed the lower authorities' decisions and instructed the Registering Authority to provide an opportunity for a hearing and verify the compliance before restoring the registration certificates.

Upon hearing the parties and reviewing the records, the High Court found that the questions proposed by the appellant did not constitute substantial questions of law. The Court noted that the Tribunal's decision to remit the matter for verification by the Registering Authority was appropriate, considering the cancellation of registration certificates. The High Court concluded that there was no valid reason to interfere with the Tribunal's order. Consequently, the Tax Appeal was dismissed, and the connected Civil Application was also disposed of as the main matter was resolved. The High Court upheld the Tribunal's decision to remit the case for verification, emphasizing the importance of compliance with return submissions and tax dues for restoring registration certificates under the Act.