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TMI Blog2016 (8) TMI 920X X X X Extracts X X X X X X X X Extracts X X X X ..... the advise, it has believed to be construction activity. The authorities below have committed an error of law and when the tax imposed has already been paid by the appellant, the penalty and interest is therefore not required to be liable to be paid by the appellant. Interest and penalty if paid, shall be refunded to appellant – appeal disposed off – decided in favor of appellant. - TAX APPEAL NO. 1283 of 2006 - - - Dated:- 4-8-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MR S N SHELAT SENIOR ADVOCATE WITH MR HARSHADRAY A DAVE, ADVOCATE FOR THE OPPONENT : MR HARDIK VORA AGP (PER : HONOURABLE MR.JUSTICE KS JHAVERI) By way of this appeal, the appellant-assessee has challenged the order dated 29th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Since the dues arising on account of assessment, penalty and interest have also been imposed and total dues raised against the appellant is ₹ 4,83,05,013/. 2.2 Against the said order, the appellant preferred an appeal before the Joint Commissioner of Sales Tax (Appeal3), Rajkot which came to be dismissed. 2.3 The matter was carried before the Gujarat Value Added Tax Tribunal at Ahmedabad by filing Second Appeal No.820 of 2005 which also came to be dismissed and this has given rise to the present appeal. 3. While admitting this appeal following question of law was posed for consideration: (1) Whether on the facts and in the circumstances of the case the Tribunal was right in law in holding that the works contract for coat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned Senior Counsel has also contended that appellant was under a bona fide belief that the work contract of the appellant would fall in entry No.1 requiring payment of tax at 2% only. Learned Senior Counsel has further contended that so far as issue Nos.3 and 4 are concerned, in view of decision of this Court rendered in Sales Tax Reference No.2 of 2003 dated 13/10/2006 as well as the decision in case of Brooke Bond India Limited v. State of Gujarat 1998 JX (Guj) 128 , appellant does not press the issue Nos.1 and 2 and he placed reliance upon paragraph No.3 of the decision in case of Brooke Bond India Limited (supra) which reds thus: 3. It appears thereafter, the Assistant Commissioner of Sales Tax initiated proceedings for revis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies below are just and proper and this Court may not interfere with the same. 6. Having heard the learned Counsel appearing for the parties and as submitted by the learned Senior Counsel for the assessee, he will not press into service the issue Nos.1 and 2, accordingly, the issue Nos.1 and 2 stands concluded as not pressed. 7. Now, so far as the issue Nos.3 and 4 are concerned, looking to the fact that activity of coating pipe is civil works and it was under bona fide opinion and following the advise, it has believed to be construction activity, otherwise it may not have levied the penalty with interest. We are of the opinion that authorities below have committed an error of law and when the tax imposed has already been paid by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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