Settled VAT precedent upheld interest cutoff, reduced penalty, and deletion of purchase tax on exempt manufacturing purchases.

Interest under the Gujarat Value Added Tax Act on assessed tax was treated as payable only up to the assessment order date, following binding precedent. Penalty under Section 45(6) was also sustained at 10% because the Tribunal's reduction matched the settled legal position. Purchase tax under Section 15B was deleted where the dealer held an exemption certificate during the relevant period and manufactured paints, making the levy inapplicable on the Tribunal's reading of taxable goods. The Tribunal's order was therefore sustained in full, and no substantial question of law arose.

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Issues: (i) Whether interest under Section 47(4A) of the Gujarat Value Added Tax Act, 2003 was leviable only up to the date of the assessment order; (ii) whether penalty under Section 45(6) of the Gujarat Value Added Tax Act, 2003 could be reduced to 10%; (iii) whether purchase tax under Section 15B of the Gujarat Value Added Tax Act, 2003 was correctly deleted.

Issue (i): Whether interest under Section 47(4A) of the Gujarat Value Added Tax Act, 2003 was leviable only up to the date of the assessment order.

Analysis: The challenge to the Tribunal's view on interest was covered by its earlier decision, which had already been confirmed by the Division Bench. The Tribunal's approach followed that binding view on the scope and timing of interest liability under the Act.

Conclusion: The answer was against the Revenue. Interest under Section 47(4A) was not leviable till the date of the assessment order.

Issue (ii): Whether penalty under Section 45(6) of the Gujarat Value Added Tax Act, 2003 could be reduced to 10%.

Analysis: The Tribunal had relied on its earlier decision, subsequently affirmed by the Division Bench, while reducing the penalty. The Court followed that settled position and found no ground to interfere with the Tribunal's view on penalty under the Act.

Conclusion: The answer was against the Revenue. Reduction of penalty under Section 45(6) to 10% was upheld.

Issue (iii): Whether purchase tax under Section 15B of the Gujarat Value Added Tax Act, 2003 was correctly deleted.

Analysis: The dealer held an exemption certificate during the relevant period and was engaged in manufacture of paints. In that context, read with the definition of taxable goods under Section 2(33), the Tribunal held that purchase tax was not payable and deleted the levy.

Conclusion: The answer was against the Revenue. Deletion of purchase tax under Section 15B was upheld.

Final Conclusion: The Tribunal's order was sustained in full and no substantial question of law arose for consideration, resulting in dismissal of the tax appeal.

Ratio Decidendi: Where the applicable issue is already settled by binding precedent and a dealer held an exemption certificate in relation to taxable goods, the Tribunal's view on interest, penalty, and purchase tax under the Gujarat Value Added Tax Act, 2003 will not be interfered with absent legal error.

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