TMI Blog2015 (2) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by the referred decision [2015 (2) TMI 372 - GUJARAT HIGH COURT], we do not find that any substantial question of law would arise as sought to be canvassed. - Decided against Revenue. - Tax Appeal No. 60 of 2015 - - - Dated:- 29-1-2015 - Jayant Patel And S. H. Vora,JJ. For the Appellant : Mr Pranav Trivedi, AGP For the Respondent : None ORDER Per: Jayant Patel: 1. The present appeal has been preferred by the Revenue on the following substantial questions of law which are reproduced as under: (1) Whether the Hon'ble Tribunal has erred in holding that the input tax carried forward is required to be adjusted against the liability of VAT? (2) Whether the Hon'ble Tribunal has erred in not giving a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 5. In our view, if the credit was already available to the assessee and as the same could be carried forward, it could validly be adjusted against the demand of tax. If principal amount of tax thereafter was not recoverable, there would not be any justification for charging interest nor any justification for penalty. We do not find that the Tribunal has committed any error in the impugned decision. 6. Apart from the above, the issue is already covered by the decision of this Court in Tax Appeal No.28/15 decided vide order dated 19.01.2015, wherein, this Court had an occasion to examine similar question and it was observed thus - 1. The present appeal is directed against the order dated 19.3.2014 passed by the Tribunal, whereby t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 of 2014 vide its decision dated 25.11.2014 had observed thus:- 1. State is in appeal against the judgment of the Gujarat Value Added Tax Tribunal ('the Tribunal' for short) proposing following questions for our consideration: (1) Whether Tribunal erred in deleting levy of interest and penalty merely because assessee had excess input credit adjustable against tax demand? (2) Any other substantial question of law as may be deemed fit by the Hon'ble High Court may kindly be framed. 2. From the record, it emerges that the Revenue contests the deletion of interest and penalty by the Tribunal in case of the respondent - assessee. The Tribunal in the impugned judgment also held as under: The appellant has paid the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nput 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. Tax appeal is dismissed. Civil Application also dismissed. 7. Same situation arises in the present matter inasmuch as the demand is confirmed and the adjustment is permitted but the interest and penalty imposed are deleted. 8. It is not in dispute that the Assessee had no surplus balance of input credit, which has been adjusted against the demand of tax upon re-assessment. Under these circumstances, the element of avoidance of tax could be said as lacking. Consequently, the deletion of interest and penalty on the part of Tribunal could not be said as unjustifiable. In the event, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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