1978 (9) TMI 158 - HC - VAT and Sales Tax

Summary

Issues involved: The constitutional validity of section 20(5) of the Punjab General Sales Tax Act is the main issue debated in a set of connected writ petitions.

Details of the Judgment:

1. Legislative History of Section 20: The provision under challenge was introduced by the Punjab General Sales Tax (Amendment and Validation) Act, 1967. It mandates that no appeal shall be entertained unless accompanied by proof of tax payment. The requirement of depositing tax before appeal has been a longstanding rule since the enactment of the statute.

2. Constitutional Validity of Section 20(5): The petitioners argued that the provision imposing conditions on the right of appeal is unconstitutional as it restricts their inherent right of appeal. However, it was clarified that the right of appeal is not a fundamental or constitutional right but a creation of the statute. Precedents establish that the legislature can impose conditions on the exercise of the right of appeal, including the deposit of tax before entertaining an appeal.

3. Precedents and Legal Position: Various judgments, including Anant Mills v. State of Gujarat, support the legislature's authority to regulate the right of appeal by imposing conditions. The court emphasized that the legislature can burden the right of appeal with conditions to prevent abuse and ensure enforcement of orders.

4. Conclusion: The court concluded that section 20(5) of the Punjab General Sales Tax Act is constitutionally valid. Ancillary contentions raised by the petitioners were also dismissed based on previous Division Bench judgments. The writ petitions were deemed without merit and dismissed, allowing the petitioners to pursue statutory remedies through appeal or revision if available.

5. Final Decision: The petitions were dismissed, and no costs were awarded. Justice S.C. Mital concurred with the decision to dismiss the petitions.

This judgment upholds the constitutionality of section 20(5) of the Punjab General Sales Tax Act, affirming the legislature's authority to regulate the right of appeal by imposing conditions such as the deposit of tax before entertaining an appeal.