Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + HC VAT and Sales Tax - 1988 (2) TMI HC This

  • Login
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

1988 (2) TMI 458 - HC - VAT and Sales Tax

Issues:
1. Interpretation of section 38(3) of the M.P. General Sales Tax Act, 1968 regarding the payment requirements for appeals against assessment and penalty orders.

Detailed Analysis:
The case involved a reference under section 44(1) of the M.P. General Sales Tax Act, 1968, where the Board of Revenue sought the High Court's opinion on whether the Tribunal was justified in allowing an appeal before the Appellate Deputy Commissioner without the required payment of 50% of the total demand of tax and penalty. The appellant had been held liable to pay a significant sum after a best judgment assessment, consisting of tax and penalty amounts. The Appellate Deputy Commissioner had rejected the appeal due to non-compliance with the payment provisions of section 38(3) of the Act. The Tribunal, however, upheld the appellant's contention that both clauses (a) and (c) of section 38(3) were applicable, requiring a deposit of 10% of the tax amount and 50% of the penalty. The Tribunal allowed the appeal, leading to the reference to the High Court by the department.

Upon examining the relevant provisions of section 38(3) in force at the time of the appeal, the High Court emphasized that when appealing against an order imposing penalty, the appellant must pay one half of the total balance due, which includes both the tax and penalty amounts. The Court held that in this case, the appellant was required to pay 50% of the total demand of tax and penalty to have the appeal admitted. The Tribunal's decision to allow the appeal without this payment was deemed unjustified by the High Court.

The High Court answered the referred question in the negative, ruling against the appellant. Additionally, the Court noted that the Tribunal had not addressed the appellant's argument regarding compliance with section 38(3)(c) at the time of appeal consideration. The Court refrained from expressing an opinion on this matter, leaving it open for the appellant to raise before the Tribunal upon the case being remanded for further proceedings. The parties were directed to bear their own costs for the reference.

In conclusion, the High Court clarified the payment requirements for appeals against assessment and penalty orders under section 38(3) of the Act, emphasizing the need to comply with the specified percentages of the total balance due, including both tax and penalty amounts, for the appeal to be admitted.

 

 

 

 

Quick Updates:Latest Updates