Research › Search › Judgment

Gujarat High Court · body

2016 DIGILAW 964 (GUJ)

Dharampal Satyapal Limited v. State of Gujarat

2016-05-03

G.R.UDHWANI, HARSHA DEVANI

body2016
ORDER : Harsha Devani, J. 1. Heard Mr. Mihir Joshi, Senior Advocate, learned counsel with Mr. Tanvish Bhatt, learned advocate for the petitioners and Mr. Kamal Trivedi, learned Advocate General with Ms. Maithili Mehta, learned Assistant Government Pleader for the respondents. 2. On a consensus arrived at between the parties, the petition is disposed of in the following terms: (i) It has been contended on behalf of the petitioners that the respondents have repeatedly relied upon the provisions of section 50 of the Gujarat Value Added Tax Act, 2003 (hereinafter referred to as "the GVAT Act"). However, it is necessary to first determine whether this section can be made applicable to the petitioner since there is no tax evasion alleged or otherwise on the transaction of consignment sales between the petitioners and the CSA since it was always meant for sale within the State of Gujarat. The allegation is on the movement of goods post-delivery to the CSA which is beyond the control of the petitioners. According to the petitioners, even otherwise section 50 of the GVAT Act relates to liability of tax which does not include interest and penalty. Tax is already deposited "under protest" and the CSAs have also sought further installments to pay such amount. Hence, under section 50 of the GVAT Act, if such amount is paid by the CSAs, the same would absolve the purported liability of the petitioners for tax and such amount will have to be refunded to the petitioners. The Assessing Officer, while framing the assessment, shall take into consideration the above contentions raised by the petitioners. (ii) The respondents shall provide all the books of account to the petitioners as well as any of the hard-disks seized by them to enable the petitioners to respond to any of the queries raised by the Value Added Tax Department. (iii) In view of the orders passed by this court, no coercive steps shall be taken against the petitioners like provisional attachment or recovery till the finalization of all the assessments and till the statutory time limit for such payment post passing of such assessment orders has elapsed. In case the assessments are made beyond the statutory limits as per section 34 of the GVAT Act, the rights of the petitioners to challenge any of the proceedings on the ground of jurisdiction or limitation shall be left open. In case the assessments are made beyond the statutory limits as per section 34 of the GVAT Act, the rights of the petitioners to challenge any of the proceedings on the ground of jurisdiction or limitation shall be left open. (iv) Assessment for the past years shall be done in accordance with law. (v) In any of the pending proceedings, if the Assessing Officer requires any information to be furnished by the petitioners, the petitioners shall duly extend cooperation to the Assessing Officer. 3. The petition stands disposed of accordingly. Notice is discharged with no order as to costs.