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1979 (12) TMI 146 - HC - VAT and Sales Tax
Issues involved:
The issues involved in this case are: 1. Whether the appeal before the first appellate authority could be considered time-barred due to the delay in depositing one-third of the tax amount? 2. Whether the dismissal of the appeal by the first appellate authority was justified despite the tax amount being paid after the specified time? Issue 1: Time-barred appeal The assessee was assessed to tax under the Madhya Pradesh General Sales Tax Act, 1958, and filed an appeal against the order of assessment. The Appellate Assistant Commissioner directed the assessee to pay a sum of Rs. 6,000 out of the tax assessed by a certain date. The assessee deposited Rs. 1,000 on time but paid the remaining amount after a significant delay. The Appellate Assistant Commissioner issued a notice questioning the delay in payment, leading to the dismissal of the appeal. The Tribunal upheld the dismissal, citing the delay in depositing one-third of the tax amount. However, the High Court clarified that the appeal could not be considered time-barred solely based on the delay in depositing the tax amount, as per the provisions of section 38(3) and (4) of the Act. Issue 2: Dismissal of the appeal The Appellate Assistant Commissioner dismissed the appeal on the grounds of non-compliance with the payment deadline set by the authority. The Tribunal supported this decision, believing that one-third of the tax amount must be paid before or along with the appeal memo. However, the High Court disagreed with this interpretation, emphasizing that the condition of depositing tax should be fulfilled before the appeal is admitted or entertained, not necessarily at the time of filing the appeal. The Court referred to relevant legal precedents and highlighted the distinction between filing an appeal and admitting or entertaining it. Consequently, the High Court ruled that the dismissal of the appeal by the Appellate Assistant Commissioner was not justified. In conclusion, the High Court answered the questions posed by the Sales Tax Appellate Tribunal as follows: 1. The appeal was not time-barred. 2. The dismissal of the appeal by the Appellate Assistant Commissioner was not proper. No costs were awarded in this matter.
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