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TMI Blog2020 (2) TMI 298X X X X Extracts X X X X X X X X Extracts X X X X ..... ntial question of law arise out of the impugned judgment and order passed by the Tribunal - Appeal disposed off. - R/TAX APPEAL NO. 40 of 2020 - - - Dated:- 22-1-2020 - MR. J.B. PARDIWALA AND MR. BHARGAV D. KARIA JJ. Mr. Chintan Dave, Assistant Government Pleader(1) for the Appellant(s) No. 1 Uchit N. Sheth(7336) for the Opponent(s) No. 1 ORAL ORDER (PER : MR. BHARGAV D. KARIA) 1. This Tax Appeal is filed under Section 78 of the Gujarat Value Added Tax Act, 2003 (for short the VAT Act, 2003 ) at the instance of Commissioner of Commercial Tax and it is directed against the order dated 07.03.2019 passed by the Gujarat Value Added Tax Tribunal, Ahmedabad (for short the Tribunal ) in Second Appeal No.1559 of 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore any order of demand for tax, interest or penalty being passed by the Assessing Officer. 3.5 Thereafter, the respondent was served with notices for assessment as well as for cancellation of its permission for composition granted under Section 14D of the VAT Act, 2003. 3.6 On primary verification, the State Tax Officer suggested that the respondent should deposit tax at the rate of 4% prescribed for composition under Section 14D of the VAT Act ,2003 on the transactions suspected as suppressed sales and accordingly, the respondent deposited ₹ 5,35,415/on 18.08.2018 though it was was objecting to the proposal of suppressed sale. 3.7 Thereafter, on 28.08.2018, order cancelling the permission of composition issued under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on 28.08.2018 though the assessment orders alleging suppression of sales were passed subsequently on 19.09.2018. Considering the above stated facts and reasons, the permission for composition has been cancelled before any decision regarding the suppression of sales was taken. Considering the above stated facts and reasons such prejudgment in a case where the permission is cancelled with retrospective effect hang huge financial implication on the dealer is not fair, reasonable and legal. 12. We have also simultaneously heard the Second Appeal Nos.1556 to 1558 of 2018 filed against the summary dismissal of First Appeals against the assessment orders for the aforementioned period. It is noticed by us that the appellant, the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccording to us, in the circumstances till any decision on assessments is taken if order cancelliing permission for composition is allowed to remain in force it will influence the decision of the learned First Appellate Authority. We cannot ignore that the payment made at the rate of 4% on the alleged suppressed sales even before any order was passed against the appellant were made by the appellant, even though there is no written order for such direction therefore, it is very natural that no dealer would make such payment without any indication from the learned Officer. On the other hand, if the learned Officer is directed to take decision relating to cancellation of permission for composition after the decision on assessments is final ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n or explanation pursuant to the notice issued under Section 14D of the VAT Act, 2003. It was, therefore, submitted that the Tribunal has committed error by holding that the order of canceling the permission for composition of tax could not have been passed even before framing the assessment order against the respondent. 9. On the other hand, learned advocate for the respondent has submitted that the Tribunal has rightly quashed and set aside the order of canceling the permission for composition of tax on the ground that unless and until the authority comes to a conclusion that there is a suppression of sales by the respondent-assessee, then no order could have been passed for cancelling the composition of tax. 10. We have considered ..... X X X X Extracts X X X X X X X X Extracts X X X X
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