9911796707
TMI Blog2014 (4) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... inequitable situation or for sufficient and reasonable cause - All that the petitioner offered by way of explanation for his non-registration was a bona fide error which was even otherwise not acceptable - If under such circumstances, the Government did not find it appropriate to exercise power u/s 41 (1) of the Act - No need for interference - The contention that there was a breach of natural justice also cannot be accepted - It was not a case where the Government without putting the petitioner to notice passed an order which resulted into adverse civil consequences - It was a case where the petitioner made a representation which was not accepted by the Government - The insistence on personal hearing also has no legal base - It is well set ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner s failure to obtain the registration, he was unable to get the credit. To assess the petitioner s liability for VAT, proceedings were initiated and we are informed that the Assistant Commissioner confirmed total tax demand of Rs. 41,81,169/- and permitted deduction of Rs. 6,68,242/-, which was the tax deducted by the Western Railway at source. The Asstt. Commissioner imposed penalty equal to the amount of tax and also demanded interest of Rs. 15,29,085/-. The order of the Asstt. Commissioner is under challenge before the Gujarat Value Added Tax Tribunal. At that stage, the petitioner applied to the State Government under application dated 4th February 2010 and requested for remission of the tax and penalty under section 41 (1) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art. The Western Railway had deducted tax at source which gave an impression to the petitioner that now he is not required to obtain registration, since tax is already deducted. The explanation of the petitioner begs the question. Deduction of tax at source has no relevance to the requirement of registration by a dealer under the VAT Act. It is a statutory requirement and mere explanation that he was under bona fide impression that no such registration was necessary would not be sufficient. Section 41 (1) of the VAT Act permits the State Government, subject to such conditions as it may impose, remit by an order either generally or specially, the whole or any part of the tax, penalty or interest payable in respect of any period by any dea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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