2015 (3) TMI 1196

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....Tax Appeal. 2.  At the outset it is required to be noted that while admitting the present Tax Appeal, the Division Bench of this Court had framed the following substantial questions of law. "(1) Whether on the facts and in the circumstances of this case the Gujarat Value Added Tax Tribunal was justified in holding that the opponent - assessee is entitled to adjustment of input tax credit towards the output tax liability for the assessment year in question? (2) Whether on the facts and in the circumstances of this case the Gujarat Value Added Tax Tribunal was right in law in deleting the interest and penalty of Rs. 28,160/and Rs. 1,56,404/respectively?" 3.  Learned advocates appearing on behalf of respective....

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....ibunal erred in deleting levy of interest and penalty merely because assessee had excess input credit adjustable against tax demand? (2) Any other substantial question of law as may be deemed fit by the Hon'ble High Court may kindly be framed." 2. From the record, it emerges that the Revenue contests the deletion of interest and penalty by the Tribunal in case of the respondent - assessee. The Tribunal in the impugned judgment also held as under: "The appellant has paid the amount of 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 w....