TaxTMI 
TaxTMI 
2015 (5) TMI 295
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....nt? 2.00. The main grievance voiced by Ms.Vacha Desai, learned Assistant Government Pleader appearing on behalf of the appellant-State is that as the appeal before the learned Tribunal was against the order of first appellate authority dismissing the appeal on the ground of non-deposit of predeposit, in light of the decisions of this Court in Tax Appeal Nos.711/2013 dated 30/08/2013; 667/2013 dated 12/09/2013; 688/2013 dated 30/01/2014; 595/2014 dated 13/08/2014; 1317/2014 dated 11/12/2014 and 104/2015 dated 19/03/2015, the learned Tribunal ought not to have entered into the merits of the case and / or ought not to have decided the issue on merits and / or considered the legality and validity of the original assessment order and, therefore, it is requested to quash and set aside the impugned order passed by the learned Tribunal and remand the matter either to the learned Tribunal or to the learned first appellate authority. 3.00. Mr. Tushar Hemani, learned advocate appearing on behalf of the respondent-dealer has as such fairly conceded that as the appeal before the learned Tribunal was against the order passed by the learned first appellate authority dismissing the appeal on non....
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....d / or even the learned first appellate authority as now the main issue on merits is concluded against the revenue by the judgment and order of this Court in the case of Cosmos International Ltd. (Supra). However, the aforesaid shall be in the peculiar facts and circumstances of the case narrated hereinabove and without citing the same as a precedent. 5.00. Now so far as the other questions of law on merits i.e. question nos.(B), (C) & (D) are concerned, the aforesaid questions are squarely covered against the revenue in view of the decision of the Division Bench of this Court dated 20/3/2015 passed in Cosmos International Ltd. (Supra). In the aforesaid decision, the Division Bench of this Court has confirmed the decision of the learned Tribunal by which it was held that the dealer can adjust the tax liability out of the amount in the current year of tax liability out of the Input Tax Credit available in the credit of the dealer. After considering the various provisions of the Gujarat Value Added Tax Act and Rules, 2006, more particularly Sections 11, 12 & 13 and Rule 15 and 18, the Division Bench of this Court in paras 7 to 8 has observed and held as under; "[7.0] Heard learned ....
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....1 15(1) ... 15(2) ... 15(3). A registered dealer shall calculate tax credit as per Form201 and such calculation shall be made separately for each tax period. 18. Calculation of Tax (1) The net amount of tax payable under section 13 by a registered dealer, other than the dealer who has been granted permission to pay lump sum tax under Section 14, 14A read with clause (bb) of sub-rule (8) of rule 28, 14B, 14C or 14D shall be determined in Form 201. (2) If the amount calculated as per sub rule (1) has a negative value- (a) the same shall be adjusted against tax liability, if any, under the Central Sales Tax Act (hereinafter called "central sales tax liability") for the said tax paid and the remaining amount of central sales tax shall be payable : or (b) if there is no Central Sales Tax liability or if the central sales tax liability for the said tax period is less than the said negative amount, then no tax under the Act as well as under the Central Act will be payable and the net amount, after adjusting the Central Sales tax liability, shall be carried forward to the next tax period of the same year or, as the case may be, the subsequent year." Section 11 of the VAT Act provi....
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....he case may be, a final amount of Input Tax Credit is assessed and determined. Once on assessment or reassessment, as the case may be, a final amount of Input Tax Credit is assessed and determined, an assessee/dealer is entitled to such Input Tax Credit and on such Input Tax Credit the assessee is entitled to adjust such Input Tax Credit against its output tax liability under the VAT Act of the current year under consideration. Only in a case where the admissible available Input Tax Credit is less than the output tax liability of the current year under consideration, after permitting to adjust such Input Tax Credit against its output tax liability of the VAT Act of the current year under consideration, the assessee/dealer is liable to pay the interest on such balance due amount of output tax liability and on such amount the assessee/dealer is liable to pay the interest as provided under the VAT Act and the Rules, 2006. Under the circumstances, while declaring / holding that the appellant is entitled to adjustment of admissible Input Tax Credit towards its output tax liability of the current year under consideration, the learned Tribunal has rightly observed and held that the assess....