2023 (9) TMI 1005 - HC - VAT and Sales Tax

Validity of assessment order - failure of appellant to deposit the pre-deposit amount - disallowance of input tax credit - HELD THAT - The appellant shall deposit Rs. 50 lakhs within a period of 15 days from today and Rs. 50 lakhs shall be deposited before 31.10.2023 and Rs. 1 crore before 30.11.2023 with the respondent instead of bank guarantee - The appellant shall also file an undertaking to the aforesaid effect before this court within a period of one week from today - The appellant shall tender a bond to the satisfaction of the Assessing Officer for the remaining amount of pre-deposit as directed by the Tribunal. The matter should be remanded to the First Appellate Authority as the First Appellate Authority has dismissed the appeals of the appellant without going into the merits. The matter is therefore remanded to the First Appellate Authority.

Summary

Issues Involved:
Challenge to common order of Gujarat Value Added Tax Tribunal u/s 78 of Gujarat Value Added Tax Act for pre-deposit of Rs. 11,34,53,111/- for assessment years 2015-16, 2016-17, and 2017-18.

Details of the Judgment:

Issue 1: Challenge to Tribunal's Order for Pre-Deposit
The appellant challenged the Tribunal's order directing pre-deposit of Rs. 11,34,53,111/- for disallowance of Input tax credit in assessment order due to alleged circular transactions with sister concerns.

Issue 2: Appellant's Contention and Submissions
Appellant contended a prima facie case of not claiming major benefits from circular transactions. Appellant, a listed company with significant net worth, offered to provide a bank guarantee and deposit specified amounts to show bonafides.

Issue 3: Respondent's Submission and Court's Order
Respondent suggested reverting to First Appellate Authority with appellant's submissions. Court ordered appellant to deposit Rs. 50 lakhs within 15 days, Rs. 50 lakhs before 31.10.2023, and Rs. 1 crore before 30.11.2023, filing an undertaking and bond, and remanding the matter to the First Appellate Authority.

Issue 4: Direction for First Appellate Authority
First Appellate Authority instructed to decide on appeals within 90 days from the final deposit date, maintaining that the court did not delve into the case's merits and preserving appellant's rights and contentions.

Conclusion:
Appeals disposed of with directions for deposit, undertaking, bond filing, remand to First Appellate Authority, and a timeline for appeal decision, ensuring appellant's rights and contentions remain unaffected.