1979 (4) TMI 154 - HC - VAT and Sales Tax

Summary

Issues:
1. Whether the failure to deposit interest on the tax is fatal to the entertainability of an appeal.
2. Interpretation of the requirement to deposit tax before filing an appeal under section 9(1)(a) of the Act.
3. Applicability of interest accrued on tax in determining the amount to be deposited before filing an appeal.

Detailed Analysis:
1. The judgment dealt with the issue of whether the failure to deposit interest on tax is fatal to the entertainability of an appeal. The revising authority held that the failure to deposit interest is not fatal to the appeal's entertainability. The court agreed with this view, emphasizing that the requirements of section 9(1)(a) must be met, and the failure to deposit interest does not affect the appeal's validity.

2. The interpretation of the requirement to deposit tax before filing an appeal under section 9(1)(a) was a crucial aspect of the judgment. Section 9(1)(a) mandates that the appellant should deposit the amount of tax or fee admitted in the returns or any proceeding under the Act. The court referred to a Supreme Court decision emphasizing that the appellant must deposit the tax admitted in the returns or before the assessing authority. The court rejected the argument that interest accrued on the tax must also be deposited, as it is not supported by the language of section 9(1)(a).

3. The judgment addressed the applicability of interest accrued on tax in determining the amount to be deposited before filing an appeal. The provisions of section 8(1) and 8(1-C) were discussed, highlighting that interest accrued on tax becomes part of the tax to be paid. However, the court clarified that the determination of appeal entertainability should be based on section 9 of the Act, which does not explicitly require the deposit of interest accrued on the tax. The court dismissed the revision, affirming that only the tax admitted by the appellant needs to be deposited for appeal validity.

In conclusion, the judgment clarified the requirements for depositing tax before filing an appeal, emphasizing that the failure to deposit interest on tax does not render the appeal invalid. The court's interpretation of section 9(1)(a) highlighted that only the tax admitted by the appellant needs to be deposited, excluding any accrued interest.