The main legal point established in the judgment is that interest on the amount to be refunded pursuant to the order of the appellate authority would be available. The court emphasized the principles of doctrine of merger and compensatory measure in taxation matters.

Jayant M. Patel, J.

1. The present petition is directed against the order dated September 1, 2014 passed by the Tribunal in Revision Application No. 86 of 2010 whereby the Tribunal has allowed the revision by holding that the applicants would be entitled to interest under section 54 of the Act. We have heard Mr. Dave, learned Assistant Government Pleader, for the petitioner.

2. As such the issue is already covered by the decision of this court in Tax Appeal No. 87 of 2015 decided on February 9, 2015 (State of Gujarat v. Doshi Printing Press, [2015] 82 VST 384 (Guj)), wherein the view taken by this court is that the interest on the amount to be refunded pursuant to the order of the appellate authority would be available. We may record that in the said decision this court from paras 2 to 16 is held as under (pages 386 to 398 in 82 VST):

"2. In all matters, the Revenue has preferred the appeal mainly on the following question of law:

'Whether the honourable Tribunal has erred in holding that the dealer is entitled to interest under section 54(1)(aa) on the refund arising from the appellate order?'

3. We have heard Mr. Dave, learned Assistant Government Pleader, appearing in all the appeals.

4. The common facts in the appeals are that the assessee has succeeded in the proceedings of the first appeal before the appellate authority and the appellate authority has ordered for refund of the tax amount. However, as the interest was not awarded on such refund of the tax amount, the assessee preferred second appeal before the Tribunal. The Tribunal, after considering the aspect of reasonable construction of the provisions of section 41 of the Gujarat Sales Tax Act (hereinafter referred to as 'the Act') and after taking into consideration the principles of doctrine of merger, found that when the interest on the amount of refund of tax upon the assessment is available, such interest should be made available on the refund of the tax which has accrued on account of the order passed in appeal against the assessment orders. We may, for the ready reference, record that the Tribunal relied upon its earlier view in case of Saurashtra Chemical Ltd. v. State of Gujarat in Second Appeal No. 603 of 2007 decided on August 1, 2014 wherein, following observations were made by the Tribunal which are also the basis in all the impugned orders passed by the Tribunal. The same read as under:

'18 With regard to true nature and scope of section 54(1)(aa) of the Act, this Tribunal is of the view that the purpose of the provision is to grant interest on refund of excess money paid by the assessee. Restriction is that interest is payable where assessment proceedings are carried out under section 41 and not under section 50 or any other provision. Assessment order is the result of assessment proceedings. The refund arises in appeal instead of original stage of assessment is covered within the expression "order of assessment under section 41". The phrase does not give restricted meaning as "original order of assessment under section 41" or "order of assessment tinder section41 of the first assessing officer". If the Legislature so intended it would have certainly added the word or words to give such restricted meaning. Therefore, provision must be read reasonably and full meaning must be given to the words of statute as the object is to grant interest on the excess amount paid becomes refundable as a result of an original order of assessment passed by first assessing officer or corrected/modified order of assessment passed in appeal.

19. In the opinion of this Tribunal, the assessment order passed under section 41 includes original order passed by first assessing authority as well as modified assessment order in appeal. Under an appeal the jurisdiction of the original order appealed against is exercised and therefore the order passed in appeal is corrected/modified order under the provision under which the appealed order is passed. The order passed in the appeal aga