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2015 (2) TMI 372 - HC - VAT and Sales TaxDeletion of interest and penalty - Carried forward ITC - Held that:- From the observation of the Tribunal, it appears that though the assessing officer had raised additional tax demand of ₹ 76,010/and imposed interest and penalty on such basis, the Tribunal was of the opinion that the assessee had sufficient Input Tax Credit and those tax credits could have been adjusted against the assessee’s additional assessed tax liability. That being the position, the Tribunal correctly held that the interest could not be charged. Further, we notice Section 34(7) of the Gujarat Value Added Tax Act, which pertains to the power of the Commissioner to impose penalty, begins with the expression “if a Commissioner is satisfied that the dealer, in order to evade or avoid payment of tax........” Under the circumstances, the basic intention of attempting to evade or avoid payment of taxes would be necessary for imposing penalty. - When the Tribunal found on facts that in view of availability of input tax credit as against the assessed additional tax, there was no intention on part of the assessee to avoid payment of taxes, no question of law arises - Decided against Revenue.
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