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2020 (12) TMI 1171 - HC - VAT and Sales TaxReassessment order - input credit which was allowed in the original assessment, is now disallowed - jurisdiction - time limitation - violation of the principles of natural justice - whether the impugned order of reassessment once again raising a demand by disallowing the very same input tax credit which was disallowed in the original assessment, is tenable in law? - Section 35 of the Gujarat VAT Act, 2003 - HELD THAT:- The provisions of Section 35 of the Act, 2003 would indicate that after a dealer has been assessed under Sections 33, 34 and 35 of the Act as the case may be in any particular year, if the Commissioner has reason to believe that the the whole or any part of the taxable turnover of the dealer in respect of any period, has escaped assessment or has been under assessed or has been assessed at a rate lower than the rate at which it is assessable or wrongly been allowed any deduction therefrom, or has wrongly been allowed any tax credit therein, the Commissioner may serve a notice on the dealer and after giving an opportunity of hearing, proceed to pass appropriate order to determine the best of his judgment, the amount of tax due from the dealer. In this petition, it is the original assessment order disallowing the credit which is made the subject matter of challenge. This Court is yet to adjudicate this writ application. If ultimately the writ applicant is not successful in the Special Civil Application No.18263 of 2019, then he will have to pay the tax as assessed - the impugned reassessment order is not tenable in law as there was no scope for the authority to invoke Section 35 of the VAT Act. The impugned order of reassessment order is quashed and set aside - Application allowed.
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