TaxTMI 
TaxTMI 
2026 (8) TMI 514
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.... for the respondent. 2. This Tax Appeal is filed under section 78 of the Gujarat Value Added Tax Act, 2003 [for short 'the VAT Act'] by the appellant-State arising out of the order dated 15.03.2019 passed by the Gujarat Value Added Tax Tribunal, Ahmedabad [for short 'the Tribunal'] in Second Appeal No. 1080/2018 proposing the following substantial questions of law: [A] "Whether The Gujarat Value Added Tax Tribunal has erred in Law and on facts and circumstances of the case, in setting aside the order of Ld. deputy commissioner of commercial tax-5, and considered the matter on merit?" [B] "Whether The Gujarat Value Added Tax Tribunal has erred in Law and on facts and circumstances of the case, the Hon'ble Tribunal ha....
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....lowing benefit of composition on the ground that the assessee did not produce evidence though no such notice for production of any evidence was served upon the assessee, nor the assessee was informed as to what evidence was required by the Assessing Officer, apart from the documents already forming part of the record. The assessee was also informed that the reassessment was on the basis that the assessee committed breach of composition permission by purchasing liquor from outside the State of Gujarat. Being aggrieved, the assessee preferred appeal before the First Appellate Authority which was rejected on the ground of non-payment of pre-deposit. 3.4 The assessee, therefore, preferred an appeal before the Tribunal and the Tribunal set as....
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....turnover of liquor separately and had paid tax at normal Schedule Rate on such turnover and benefit of composition permission under Section 14D of the VAT Act was qua only for the restaurant business. 3.8 Being aggrieved by the order passed by the First Appellate Authority, Second Appeal No. 1080 of 2018 was preferred by the assessee. The Tribunal, after considering the submissions made by the assessee as well as the decision in the case of Rivera Hotels Private Limited (supra), allowed the appeal filed by the assessee, quashing and setting aside the order of the First Appellate Authority as well as the reassessment order, thereby restoring the audit assessment order dated 24.10.2011. While allowing the appeal, the Tribunal has assigned ....
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.... (5), Corporate Cell and Appeal- 5, Gujarat State, Ahmedabad, dated 23/01/2018, and the order of Reassessing Authority - learned Commercial Tax Officer (1), Ghatak- 4, Ahmedabad, dated 25/03/2013, are hereby quashed and set aside. The order of the original Assessing Authority - learned Commercial Tax Officer (1), Unit-4, Ahmedabad, dated 24/10/2011, stands restored. Accordingly present Second Appeal stands disposed off with no order as to cost." 4. Learned AGP Dr. Pooja Ashar for the appellant-State submitted that the Tribunal has committed an error in holding that there was a change of opinion about the rate of tax for initiating the reassessment proceedings. It was submitted that after remand of the case, the First Appellate Authority ....
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....ited (supra). 5. On the other hand, learned Advocate Mr. Uchit Sheth submitted that the Audit assessment under Section 34(2) of the VAT Act was carried out in the year 2011 considering the Books of Accounts and the documents on record. It was submitted that the assessee had placed on record all the relevant documents before the First Appellate Authority during the remand proceedings. However, the First Appellate Authority dismissed the appeal without considering such evidence on record. 5.1 It was further submitted that the First Appellate Authority has erred in confirming the reassessment order without considering the fact that all the three conditions mentioned in the order of the Tribunal in case of Riviera Hotels Private Limited (....
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....he reassessment notice itself is bad in law as Tribunal has rightly observed that there was a change of opinion about the tax rate and therefore, the reassessment order ignoring the composition permission by raising a demand on the entire turnover of restaurant business and liquor sale at normal rate was rightly set aside by the Tribunal. 8. The provision of Section 14D of the VAT Act read with amended proviso to Rule 28C(6) of the VAT Rules stipulates that a dealer is entitle to the benefit of composition permission if the goods which are not capable of being produced in the State of Gujarat for any reason or are prohibited from being produced in State of Gujarat, the tax is to be paid at normal rate on such goods. 9. It is not in di....