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TMI Blog2015 (7) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... n held that the respondent assessee cannot be held to pay the interest and penalty on the tax levied since the assessee has already paid excess Input Tax Credit. 2. The brief facts of the case arise from the record are as under: 2.1. That the respondent is proprietary concerned, which is duly registered under the Gujarat Value Added Tax Act, 2003. The business of the respondent is of trading of iron and steel product and scrap thereof. The respondent was regularly maintaining the books of account of business and was making the payment of tax under the VAT and used to file returns in accordance with the act. The respondent submitted its returns for the assessment year of 2008-09 and produced relevant documents along with the returns. The A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 857 of 2013 . The said tax appeal has been finally heard and decided by the Division Bench of this Court along with allied matters and the view taken by the Tribunal with regard to granting deduction of excess Input Tax levied and if the assessee is entitled to pay the additional tax and the same is adjusted from the excess credit, there should be no levi of interest and penalty from the assessee. 4. On the other hand, learned advocate Mr. Uchit Sheth appeared for the respondent and states that he has already filed his appearance on behalf of the respondent - assessee. Learned advocate would submit that in view of the decision delivered by the Coordinate Bench of this Court, there is no need to interfere with the present appeal. 5. Heard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions (3) and (4) of section 12, or (b) has claimed excess tax credit than what he is entitled to under section 11 or under this section the Commissioner may, after giving the dealer an opportunity of being heard direct him to pay a penalty equal to twice the amount of tax credit so claimed. 13. Net amount of Value Added Tax The net amount of Value Added Tax for a tax period payable shall be determined after the adjustment of tax credit in the manner as may be prescribed. GUJARAT VALUE ADDED TAX RULES, 2006 15. Calculation of Tax Credit u/s.11 15(1) ... 15(2) ... 15(3) A registered dealer shall calculate tax credit as per Form201 and such calculation shall be made separately for each tax period. 18. Calculation of Tax (1) The net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determined. Once on assessment it is found that dealer is entitled to a particular Input Tax Credit, in that case, Rule 18 of the Rules, 2006 which provides for calculation of tax would come into play. On conjoint reading of section 11 of the VAT Act read with Rule 18 of the Rules, 2006, a dealer is entitled to adjust its output tax liability against its admissible Input Tax Credit in the current year under consideration. Thereafter and after adjusting the Input Tax Credit against its output tax liability of the current year under consideration, if still there is any Input Tax Credit available to a dealer/assessee, a dealer is entitled to adjust such balance Input Tax Credit against its central sales tax liability of the current year under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut Tax Credit the assessee is entitled to adjust such Input Tax Credit against its output tax liability under the VAT Act of the current year under consideration. Only in a case where the admissible available Input Tax Credit is less than the output tax liability of the current year under consideration, after permitting to adjust such Input Tax Credit against its output tax liability of the VAT Act of the current year under consideration, the assessee/dealer is liable to pay the interest on such balance due amount of output tax liability and on such amount the assessee/dealer is liable to pay the interest as provided under the VAT Act and the Rules, 2006. Under the circumstances, while declaring / holding that the appellant is entitled to a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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