2023 (9) TMI 447

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....bunal is justified in demanding pre-deposit even though it is accepted that no sales were made by the Appellant to M/s Standard Textile? (b) Whether on the facts and in the circumstances of the case the Gujarat Value Added Tax Tribunal is justified in demanding pre-deposit even though it is not in dispute that the fraudulent refund was pocketed by the consultant Mr. Sunil Shah through fraudulent bank account? (c) Whether on the facts and in the circumstances of the case the Gujarat Value Added Tax Tribunal is justified in demanding huge pre-deposit even though it was specifically pointed out that the business of the appellant is closed and it is facing financial crisis?" 2. This tax appeal under Sec. 78 of the Gujarat Value Added Ta....

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..... Mr. Uchit Sheth, learned counsel for the appellant, submitted that the appellant has a prima facie case as the purchase and sale is considered as inadmissible by the Assessing Officer, in fact, had never taken place and only because of the consultant Mr. Sunil Shah misused the trust reposed by the appellant and fraudulently entered such sales and purchase in the books of accounts of the appellant to claim the input tax credit. It was pointed out by Mr. Uchit Sheth, learned counsel, that on coming to know about such fraudulent activities carried out by Mr. Sunil Shah, the sister concern of the appellant repaid Rs. 85 lakhs of the input tax credit which was credited in its account. It was therefore submitted that the Tribunal ought to have ....

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....ner. I undertake not to sell the property and keep the property free of encumbrances. The said property has already been attached by the commercial tax department vide order dated 22.9.2022. Copy of order of attachment dated 22.9.2022 along with copy of property index card is collectively annexed herewith and marked as Annexure A1." 7.1 Considering the aforesaid undertaking, the following order is passed: The appellant shall deposit Rs. 5 lakhs as pre-deposit under the VAT Act for the admission of the appeal for the year 2013-14. The appellant shall also file an undertaking to give security by way of immovable property located at 205/A, Kalash Complex, Behind Navrangpura Post Office, Navrangpura, Ahmedabad 380 009, of which Mr. Chirag....