STATE OF GUJARAT vs KHADI GRAMODHYOG SANGH

Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Gujarat Value Added Tax Tribunal at Ahmedabad (hereinafter referred to as "the learned tribunal") dated 05/01/2016 in Revision Application No.43/2015 by which the learned tribunal has allowed the said Application and has quashed and set aside the order passed by the revisional authority cancelling the certificate of entitlement, revenue has preferred the present petition.

Heard Shri Pranav Trivedi, learned Assistant Government Pleader appearing on behalf of the petitioner.

[2.1] It is not in dispute that the respondent herein - M/s. Khadi Gram Udhyog Sangh, Rajkot was granted the certificate of entitlement for the period between 01/04/2006 to 31/03/2012 by the Commercial Tax Officer dated 18/02/2010. It is not in dispute that the same came to be cancelled by the revisional authority vide order dated 12/08/2013. It is not in dispute that the said certificate of entitlement was cancelled in exercise of revisional powers under Section 75 of the Value Added Tax Act (hereinafter referred to as "the Act"). Section 75 of the Act provides limitation of three years by the revisional authority to exercise the revisional power. In the present case, the revisional authority exercised the powers after a period of 3 ? years i.e. beyond the period prescribed under Section 75 of the Act. Under the circumstances, the learned tribunal has rightly allowed the Revision Application preferred by the respondent and has rightly quashed and set aside the order passed by the revisional authority cancelling

the certificate of entitlement as the revisional authority exercised the powers beyond the period prescribed under Section 75 of the Act. No error has been committed by the learned tribunal in quashing and setting aside the order passed by the revisional authority. Even otherwise, even on merits also, the issue is covered against the revenue in light of the decision of the Division Bench of this Court dated 22, 29/07/2016 passed in Tax Appeal No.444/2015 by which the Division Bench has held that the authority has no jurisdiction to cancel the certificate of entitlement retrospectively. Under the circumstances and even on merits also, the order passed by the revisional authority cancelling the certificate of the entitlement retrospectively cannot be sustained.

In view of the above and for the reasons stated hereinabove, there is no substance in the present petition and is accordingly dismissed.