ORAL JUDGMENT

(PER : HONOURABLE MR.JUSTICE M.R. SHAH)

1.00. Feeling aggrieved and dissatisfied with the impugned judgement and order dated 4/2/2013 passed by the Gujarat Value Added Tax Tribunal (hereinafter referred to as “the Tribunal”) in Second Appeal No.364 of 2010, by which, the learned appellate tribunal has allowed the said appeal and holding that the respondent – dealer is entitled to Input Tax Credit on the goods destroyed in flood, State of Gujarat has preferred the present appeal with the following proposed substantial questions of law :-

“(A) Whether on the facts and in the circumstances of the case, the Tribunal has rightly interpreted section 11(3), 11(5) and 11(8) of the Gujarat Value Added Tax Act, 2003?

(B) Whether the respondent is eligible for Input Tax Credit on goods, which destroyed in flood, for which compensation of the same is awarded by Insurance Company and no Out Put Tax liability is created for the same goods?”

2.00. Facts leading to the present appeal in nutshell are as under :-

2.01. That the respondent – dealer is engaged in the business of trading of safety match box and Pan Masala and a registered dealer under the Gujarat Value Added Tax Act, 2003 (here