Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 2014 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 39 - GUJARAT HIGH COURTHeavy condition of Security – Genuineness of transactions – Ab initio cancellation of registration - Held that:- The only ground on which the authority imposed the heavy condition of security of ₹ 10 lakhs was that the assessee had certain transactions with the dealers whose registrations were cancelled ab initio – From the record of this order it emerges that assessee did not indulge in any bogus billing activity - The assessee had no bogus dealing with such dealers, in some of the cases dealers had also questioned the cancellation of their registration and that the assessee had never defaulted in filing returns or paying tax. Considering the turnover of the assessee and the probable tax liability, condition of security deposit of ₹ 10 lakhs is too harsh in terms of section 28(2) of the VAT Act - Condition imposed by VAT authority is modified by requiring the assessee to give security of ₹ 2 lakhs - The appellant would have time upto 20.4.2014 to do so - Both the tax appeals allowed partly - No opinion expressed on the action of the authority in cancelling the registration ab initio for which separate proceedings parallely have gone on - It is further clarified that this order shall have effect only if such cancellation is set aside – Decided partly in favour of Assessee.
|