Western India Regional Council of
The Institute of Chartered Accountants Of India

Law Update Details

June 2018 CA. Kishor R. Gheewala

Exclusion of Period

Vide GVAT Amendment Act., 2018, a new Section 84A has been inserted in the GVAT Act., 2003, to provide that in cases, where the Appellate/Tribunal/High Court Decision, are prejudicial to the Interest of the Revenue, the period spent between the date of Judgment of Appellate/Tribunal/High Court, till the date of decision of the High Court/Supreme Court, shall be excluded, while computing time limit for Sec.34 (Audit Assessment), Sec.35 (Turnover Escaping Assessment), Sec.73 (Appeal), Sec.75 (Revision), This amendment may be consequent upon, Gujarat High Court’s decision, in case of Reliance Industries Ltd vs. State of Gujarat [SCA No. 22283 of 2017 Dt.16/3/2018], where in Revision Proceedings have been quashed as time barred. In this case, Revision powers, which could not be invoked by the Revenue due to binding GVAT Tribunal’s/Gujarat High Court’s decision against the revenue prevalent at that time, were sought to be invoked by the Department on the basis of Hon’ble Supreme Court’s decision, in case of State of Gujarat vs. Reliance Industries Ltd., reported in 2017(12) Scale 75-2017, reversing GVAT Tribunal’s and Gujarat High Court’s decision. Hon’ble Supreme Court has held that reduction in ITC @ 4%, in respect of Fuels used in Manufacture of Goods dispatched by way of Branch Transfer, is to be made Twice, viz. First @ 4% as Fuel, and again @ 4% as an input used in Goods sent by way of Branch Transfer.


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