M/S SHREEJI VITRIFIED PVT. LTD. THROUGH ITS DIRECTOR HARILAL KESHRA PATELversusSTATE OF GUJARAT

     C/TAXAP/724/2023                         ORDER DATED: 29/01/2026




        IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                 R/TAX APPEAL NO. 724 of 2023
                             With
          CIVIL APPLICATION (FOR STAY) NO. 1 of 2023
                In R/TAX APPEAL NO. 724 of 2023
=============================================
M/S SHREEJI VITRIFIED PVT. LTD. THROUGH ITS DIRECTOR HARILAL
                         KESHRA PATEL
                             Versus
                       STATE OF GUJARAT
=============================================
Appearance:
MR HIREN J TRIVEDI(8808) for the Appellant(s) No. 1
TAPAN N PATEL(9185) for the Appellant(s) No. 1
MS POOJA ASHAR, AGP for the Opponent(s) No. 1
=============================================
 CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA
       and
       HONOURABLE MR. JUSTICE PRANAV TRIVEDI

                  Date : 29/01/2026
                    ORAL ORDER
 (PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)


1.     Leave to amend the proposed substantial question of law
is granted. The following substantial question of law arises in
the present appeal.
       “10. (i)   Whether in facts and circumstances of the
       case whether the Hon'ble Tribunal has committed
       substantial error of law in confirming the disallowance
       made by the First Appellate Authority rejecting the claim
       of Form C to the tune of Rs.92,30,891/- on the basis of
       negative report shared by the corresponding states
       without sharing the same with appellant?”

2.     At the outset, learned advocate Mr.Hiren J. Trivedi,
appearing for the appellant has drawn attention to the grounds
raised by the appellant before the Gujarat Value Added Tax
Tribunal, Ahmedabad (in short, “the Tribunal”) regarding
production of relevant documents, such as transport receipts,


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     C/TAXAP/724/2023                        ORDER DATED: 29/01/2026




tax invoices etc., to substantiate the genuineness of the
interstate sales transactions. However, the First Appellate
Authority, on the basis of a negative report and on the ground
that the declaration Form-C was not reconciled on the TINXSYS
website and rejected the declaration Form-C to the extent of
Rs.92,30,891/-. It is submitted that the Tribunal, without
application of mind, has cryptically rejected the appeal filed by
the appellant, without considering that the matter could have
been remanded to the First Appellate Authority.

3.     Learned Assistant Government Pleader Ms.Pooja Ashar,
appearing for the respondent – State, while opposing the
present appeal, has submitted that the impugned orders
passed by the Tribunal as well as the First Appellate Authority
do not warrant interference, as the appellant failed to produce
any Form-C or documentary evidence to controvert the
negative report and accordingly, the Form-C to the tune of
Rs.92,30,891/- was rightly rejected.

4.     We have perused the orders passed by the Tribunal as
well as the First Appellate Authority.

5.     From the pleadings, it is noticed that the appellant had
produced documents such as Form-402, copies of transport
receipts, and copies of tax invoices to support the genuineness
of the interstate sales transactions and had accordingly sought
the benefit of concessional rate of tax.

6.     The First Appellate Authority partly allowed the claim and
disallowed the claim to the extent of Rs.92,30,891/- by placing
reliance on a negative opinion. However, it is an admitted fact

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     C/TAXAP/724/2023                                 ORDER DATED: 29/01/2026




that copies of such negative opinion/reply received by the
Department were never supplied to the appellant. This
approach is in violation of principles of natural justice.

7.     The partial rejection of the claim culminated in appellate
proceedings before the Tribunal, by way of Second Appeal
No.802 of 2023. The Tribunal has also rejected the appeal
without recording any reasons, by passing a cryptic order,
without examining the contention regarding negative rerpot
advanced by the appellant.

8.     In view of the above, we quash and set aside the order
passed by the Tribunal. Further, since the First Appellate
Authority has committed errors; (i) by not furnishing copies of
the negative reply to the appellant; and (ii) by ignoring the
documentary             evidence   produced      by       the       appellant,
we also set aside the orders passed by both the Tribunal and
the First Appellate Authority and remand the matter to the
First Appellate Authority.

9.     The First Appellate Authority shall pass a fresh order after
granting an opportunity of hearing to the appellant and
permitting the production of all relevant documents. The First
Appellant Authority Authority shall pass a reasoned order
dealing with all contentions raised by the appellant. It is
clarified that the First Appellate Authority shall supply a copy
of the negative report, on which the reliance is placed, so as to
enable the appellant to respond to the same. The necessary
order shall be passed within a period of twelve (12) weeks
from the date of receipt of this order.


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      C/TAXAP/724/2023                                                      ORDER DATED: 29/01/2026




10.     With these observations, the substantial question of law
is answered in favour of the appellant. Accordingly, the present
appeal is allowed.

11.     The connected civil application does not survive and
stands disposed of accordingly.
                                                                                            Sd/-
                                                                               (A. S. SUPEHIA, J)


                                                                                  Sd/-
                                                                           (PRANAV TRIVEDI,J)
MAHESH/13
 Original copy of this order has been signed by the Hon'ble Judges.
 Digitally signed by: MAHESH OMPRAKASH BHATI(HC01086), PRIVATE SECRETARY, at High Court of Gujarat on 30/01/2026 14:15:12




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