Section 12(7) in The Gujarat Value Added Tax Act, 2003
(7)if the Commissioner is satisfied that a dealer-(a)has claimed tax credit for such stock for which he is not entitled for claiming tax credit as per the provisions of section 11 and sub sections (3) and (4) of section, 12, or(b)has claimed excess tax credit that what he is entitled to under section 11 or under this section.the Commissioner may, after giving the dealer an opportunity of being heard direct him to pay a penalty equal to twice the amount of tax credit so claimed.
