2014 (4) TMI 177

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....ourable Mr. Justice Akil Kureshi) The petitioner has challenged communication dated 8th October 2013 issued by the Deputy Secretary {Tax}, Government of Gujarat under which, the petitioner's application for remission of tax and further liabilities under Section 41 of the Gujarat Value Added Tax Act, 2003 ["VAT Act" for short] came to be rejected. Brief facts are that the petitioner was based....

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....istration, he was unable to get the credit. To assess the petitioner's liability for VAT, proceedings were initiated and we are informed that the Assistant Commissioner confirmed total tax demand of Rs. 41,81,169/- and permitted deduction of Rs. 6,68,242/-, which was the tax deducted by the Western Railway at source. The Asstt. Commissioner imposed penalty equal to the amount of tax and also deman....

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....er Section 41 (1) of the VAT Act that a dealer must be registered before his request for remission can be accepted. He submitted that the petitioner had made detailed grounds why remission should be granted. The State rejected such application without hearing the petitioner. He relied on decision of the Supreme Court in case of Shara India (Firm) vs. Commissioner of Income Tax, CentralI, reported ....

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....tion of the petitioner begs the question. Deduction of tax at source has no relevance to the requirement of registration by a dealer under the VAT Act. It is a statutory requirement and mere explanation that he was under bona fide impression that no such registration was necessary would not be sufficient. Section 41 (1) of the VAT Act permits the State Government, subject to such conditions as ....