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2022 (2) TMI 789 - GUJARAT HIGH COURTViolation of principles of natural justice - assessment order disallowing a huge amount of Input Tax Credit on the ground of “unreconciled input tax credit” is passed, without issuing any SCN - HELD THAT:- The writ applicant, being dissatisfied and aggrieved by such assessment order, preferred an appeal under Section 73 of the VAT Act before the first Appellate Authority. It appears that the first Appellate Authority, having regard to a strong prima facie case, admitted the appeal and also granted stay against the recovery pursuant to the assessment order subject to pre-deposit of an amount of ₹ 1 Lakh - It is the case of the firm that the first Appellate Authority intended to allow the appeal and in such circumstances, the file of the firm was sent to the G.R. Cell in accordance with the procedure prescribed by the circular dated 30th July 2016. It appears that based on the suggestions by the G.R. Cell, again, a notice 23rd October 2019 came to be issued to the firm calling upon the firm to produce evidences in respect of the claim of Input Tax Credit. Ultimately, the first Appellate Authority dismissed the first appeal. It is the case of the firm that the first Appellate Authority dismissed the first appeal on the ground which never formed part of the assessment order - the firm, thereafter, preferred a Second Appeal before the Tribunal. The Tribunal passed an order asking the writ applicant – firm for a pre-deposit of ₹ 10 Lakh. The appellant is hereby directed to deposit ₹ 10,00,000/- (20% of tax amount of ₹ 49,78,555/-) as a pre-deposit within the period of one month from the date of this order - Amount the appellant has paid as a pre-deposit at the stage of first appeal is adjusted against pre-deposit - application disposed off.
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