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2015 (4) TMI 212 - GUJARAT HIGH COURTReduction of input tax credit - levy of interest and penalty under Section 12(7) - Validity of Tribunal's order - First appellate authority ordered for pre deposit - On appeal to Tribunal, Tribunal decided appeal on merits - Held that:- Tribunal has committed grave error in deciding the appeal on merits and considering the legality and validity of the adjudication order. It is required to be noted that as such the appeal before the learned Tribunal was against the order passed by the First Appellate Authority dismissing the appeal on non deposit of ₹ 3,60,000/- as pre deposit i.e. on non compliance of the order of pre deposit. It is required to be noted that First Appellate Authority did not decide the appeal on merits and the First Appellate Authority did not go into the legality and validity of the adjudication order. Under the circumstances, as such appeal before the learned Tribunal was confined to the question whether condition of pre deposit of ₹ 3,60,000/- imposed by the First Appellate Authority was legal or not. In such appeal, as such, learned Tribunal could not have entertained question of legality of the adjudication order. From the impugned judgment and order passed by the learned Tribunal, it appears that the learned Tribunal has decided the appeal as if it was hearing the appeal against the judgment and order passed by the learned First Appellate Authority deciding the appeal on merits. Impugned judgment and order passed by the learned Tribunal deserves to be quashed and set aside and the matter is to be remanded to the learned Tribunal to decide the appeal afresh and appeal shall be confined to the legality and validity of the order passed by the learned First Appellate Authority imposing condition of pre deposit of ₹ 3,60,000/- and dismissing the appeal on non deposit of amount of pre deposit. - Decided partly in favour of assessee.
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