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1996 (4) TMI 482 - HC - VAT and Sales Tax
Issues:
Challenge to orders annexures P4 and P5 for tax recovery and penalty imposition. Entertaining appeal without deposit of additional demand as ordered by the Tribunal. Analysis: The judgment pertains to a petition filed to challenge orders annexures P4 and P5 related to tax recovery and penalty imposition. The petitioner's firm had an assessment finalized in 1984, after which additional turnover was added, and a penalty was imposed. The petitioner appealed to various authorities, including the Sales Tax Tribunal, seeking exemption from payment of the additional amount as a condition for appeal hearing. The Tribunal initially directed payment in installments, then 50% upfront, leading to the dismissal of the appeal due to non-compliance. During the hearing, the petitioner's counsel focused on the issue of entertaining the appeal without the deposit of 50% of the additional demand, citing the proviso to section 39(5) of the Haryana General Sales Tax Act, 1973. Reference was made to a previous order highlighting the need for the Tribunal to reconsider the petitioner's request without the deposit. The delay in filing the writ petition was explained due to communication issues regarding the Tribunal's orders. The Court analyzed the contentions and observed that the Tribunal had not properly considered the petitioner's plea for exemption from depositing the additional demand. It was noted that the Tribunal's order lacked reasoning and did not address the petitioner's inability to pay the amount. The Court emphasized the importance of recording reasons and communicating them to the concerned party for a fair decision-making process. Consequently, the Court allowed the writ petition, quashing orders P4 and P5. The Sales Tax Tribunal was directed to reevaluate the petitioner's application under the relevant section of the Sales Tax Act, providing a reasoned decision on whether to accept or reject the request for appeal without the deposit. Each party was directed to bear its own costs in the matter.
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