Full bench of the Gujarat Value Added Tax Tribunal in the case of ‘Kunal Structure (India) Pvt. Ltd. V/SThe StateOf Gujarat’ held that in view ofprovisions contained in Sec. 75 of the Gujarat Value Added Tax Act, 2003, penalty cannot be imposedfor the first time in revision. While distinguishing the judgment of Supreme Court of India rendered inthe case of Sree Balaji RiceMills v/s State of Karnataka[(2005) 140 STC 267 (SC)], the Tribunalfollowed the judgment of Gujarat High Court rendered in thecase of Bhavnagar Chemicals Works (1946) Ltd. v/sCommissioner of SalesTax, Ahmedabad [(1991)83 STC 409 (Guj)].The Tribunal also deleted interest levied under Sec. 42 (6) ofthe Gujarat Value Added Tax Act, 2003 holding that conditionprecedent for levy of interest under the said section was that the tax assessedshould exceed the tax already paid. In the instant case, though as a result ofrevision, fresh dues did arose, but interest u/s 42 (6) could not be leviedbecause it was the case of recovery of refund granted erroneously in theassessment proceedings (reduction in refund already paid) and even as aresult of revision, the tax assessed did not exceed the amount of tax alreadypaid.Source – Kunal Structure (India) Pvt. Ltd. V/SThe StateOf Gujarat ( Gujarat Value Added TaxTribunal, Ahmedabad), Revision Application No. 121 Of 2013. Dates- 19/03/2014