2007 (12) TMI 434 - HC - VAT and Sales Tax

Rectification of the order - Held that - At this stage it is not possible for us to record a finding whether there is any mistake in framing the assessment by the Excise and Taxation Officer-cum Designated Officer, Patiala. Accordingly no view is being expressed with regard to the correctness of the amount of wrong ITC claim availed by the petitioner. However, keeping in view the various aspects and in the interest of justice, we deem it just and appropriate to exercise discretion by directing the respondent-Deputy Excise and Taxation Commissioner (Appeals), Patiala Division, Patiala to accept the pre-deposit amount of Rs. one crore. The aforementioned amount shall be considered sufficient compliance of the requirement of section 62(5) of the Act.

Summary

Issues:
1. Quashing of orders passed by Excise and Taxation Officer and Punjab Vat Tribunal.
2. Challenge to assessment order and appeal dismissal for non-payment of 25% of tax amount.
3. Discretionary direction for pre-deposit compliance under section 62(5) of the Act.

Issue 1: Quashing of Orders:
The petitioner sought to quash multiple orders, including those passed by the Excise and Taxation Officer and the Punjab Vat Tribunal. The assessment order dated August 30, 2006, raised a demand of Rs. 6,07,60,078, which was challenged before the Deputy Excise and Taxation Commissioner (Appeals) and subsequently before the Tribunal. The Tribunal dismissed the appeal on September 7, 2007. The High Court, after hearing both parties, refrained from expressing a finding on the assessment's correctness but directed the Deputy Excise and Taxation Commissioner to accept a pre-deposit of Rs. one crore in lieu of the required 25% deposit, disposing of the writ petition with this direction.

Issue 2: Challenge to Assessment and Appeal Dismissal:
The assessment order dated August 30, 2006, imposed penalties and interest, totaling the demand amount. The petitioner's appeal to the Deputy Excise and Taxation Commissioner was dismissed for failing to deposit 25% of the tax amount, as required by section 62(5) of the Act. The subsequent appeal to the Tribunal was also dismissed. The High Court, considering various aspects and in the interest of justice, exercised discretion by directing the Deputy Excise and Taxation Commissioner to accept a pre-deposit of Rs. one crore, deeming it sufficient compliance with the statutory requirement.

Issue 3: Discretionary Direction for Pre-Deposit Compliance:
In the interest of justice, the High Court directed the Deputy Excise and Taxation Commissioner to accept a pre-deposit of Rs. one crore instead of the mandated 25% deposit. This pre-deposit was deemed sufficient compliance with section 62(5) of the Act. The petitioner was instructed to make this deposit before January 7, 2008. Failure to comply by the specified date would result in the dismissal of the writ petition without further reference to the Bench, allowing the previous orders to stand.

This detailed analysis of the judgment highlights the issues of quashing orders, challenge to assessment and appeal dismissal, and the discretionary direction for pre-deposit compliance, providing a comprehensive understanding of the legal proceedings and outcomes in the case.