2015 (2) TMI 927

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....in not giving a specific direction requiring us to execute reversal of carry forward of input credit in subsequent year? (3) Whether the Hon'ble Tribunal erred in deleting liability of penalty and interest by permitting such adjustment of carried forward input tax credit? (4) Any other substantial questions of law as may be deemed fit by the Hon'ble High Court may kindly be framed." 2. We have heard Mr.Trivedi, learned AGP for the appellant. 3. In our view, even if any question is to be considered, only one question may arise for consideration and not the aforesaid formulated four questions and the same can be as under: "Whether the Tribunal has committed any error in law and in facts in deleting the interest and pena....

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....emand of tax is confirmed, but the interest and penalty imposed are deleted. 2. The Revenue has preferred the present appeal and has formulated various questions, which we find that all do not arise but the only substantial question of law, considering the facts and circumstances, may arise in the present matter as under:- "Whether Hon'ble Tribunal erred in deleting the liability of penalty and interest by permitting such adjustment of carried forward input tax credit ?" 3. On facts, it appears that the Assessing Authority made re-assessment and made the demand of Rs. 34,802/-, but additionally charged interest as well as penalty. The matter was carried in appeal and the Deputy Commercial Tax Commissioner dismissed the appeal. ....

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....f tax fully therefore, we are not disturbing the amount of carried forward ITC. The appellant is entitled to claim said ITC for next tax period. As stated above, the appellant is not liable to pay interest on tax demand as the ITC was first required to adjust against the current year liability as per the provision of rule 18 of the Rule. The appellant had sufficient balance of ITC to adjust against the additional tax liability, which aroused due to disallowance of ITC. We therefore, remove entire interest and penalty. We pass following order." 3. From the observation of the Tribunal, it appears that though the assessing officer had raised additional tax demand of Rs. 76,010/and imposed interest and penalty on such basis, the Tribunal was....