TMI Blog2018 (10) TMI 519X X X X Extracts X X X X X X X X Extracts X X X X ..... tax accordingly. The essential character of chicory roots does not change by reason of slicing, cutting and drying and hence they are not liable to tax either under the GST Act or under the CST Act and therefore, no outstanding amount remain. The prosecution which has been initiated for the recovery of the amount in absence of any adjudication in form of the department and in wake of the said outcome even otherwise is no longer sustainable. Application allowed. - R/CRIMINAL MISC.APPLICATION NO. 19249 of 2015 - - - Dated:- 4-10-2018 - MR. A.J. DESAI J. Appearance: MR PREMAL S RACHH (3297) for the PETITIONER(s) No. 1,2,3,4 MS MOXA THAKKAR, APP (2) for the RESPONDENT(s) No. 1 RULE SERVED BY DS(65) for the RESPONDE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... An appeal came to be preferred under Section 65 of the Gujarat Sales Tax Act before the Deputy Commissioner of Commercial Taxes (Appeal-12), Rajkot on the grounds of the assessment being time barred and also that no process of cutting or drying the roots was done and therefore, the corollary to the same was the produce would fall under the Entry No.23 of the First Schedule of the Gujarat Sales Tax Act. The appeal was also dismissed maintaining the order of Commercial Tax Officer. As this issue was faced by many other companies, namely, Hindustan Lever Limited, challenged the same before the Apex Court. The Apex Court on 26.08.1998 in case of Hindustan Lever Limited vs Commissioner of Sales Tax, Gujarat, reported in (2001) 10 SCC 493 had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld defeat the right of the parties. Reliance is placed on the various decisions who urged that the application deserves to be allowed. 8. He has also further submitted that the Second Appeals which came to be preferred by the company being Second Appeal Nos.937 of 2015 and 938 of 2015 were allowed on 10.03.2016 by the Gujarat VAT Tribunal. Tribunal has held that the chicory roots were not liable to tax either under the GST Act or under the CST Act. Since there was no tax to be levied, the question of charging any interest also would not arise. It is further pointed out to the Court that a communication from the Office of Commissioner of VAT dated 11.08.2016 also indicates that they were to communicate to the police authority for withdra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdingly. 11. The Second Appeal in the case of the present applicants also is quite clear that the said decision has been made applicable in the case of the present applicants as the Tribunal has held clearly that the essential character of chicory roots does not change by reason of slicing, cutting and drying and hence they are not liable to tax either under the GST Act or under the CST Act and therefore, no outstanding amount remain. The prosecution which has been initiated for the recovery of the amount in absence of any adjudication in form of the department and in wake of the said outcome even otherwise is no longer sustainable. So far as the question that has been raised is as to whether for recovery of the amount as assessed for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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