2010 (7) TMI 924 - HC - VAT and Sales Tax

Summary

Issues Involved:
Petition seeking quashing of assessment order under Punjab Value Added Tax Act, 2005; Availability of alternative remedy of appeal; Allegations of mala fide; Dispute regarding turnover classification; Requirement of pre-deposit for appeal; Direction for entertaining appeal without pre-deposit; Dismissal of writ petition.

Analysis:

The judgment of the court, delivered by Adarsh Kumar Goel J., pertains to a petition seeking the quashing of an assessment order dated April 12, 2007, under the Punjab Value Added Tax Act, 2005. The petitioner did not avail of the alternative remedy of appeal, citing the substantial tax liability imposed. Allegations of mala fide were raised, contending that despite evidence indicating inter-State sales with tax payment, the Assessing Authority wrongly treated them as intra-State sales, leading to a higher tax demand. The petitioner highlighted the onerous requirement of depositing 25% of the demanded amount for appeal under section 62(5) of the Act, seeking a waiver due to the circumstances.

The court, without expressing a final opinion on the merits, directed that the petitioner's appeal be entertained without the pre-deposit condition, subject to the petitioner providing a personal bond to the satisfaction of the appellate authority. Additionally, the court allowed the appeal to be filed within one month without dismissal due to any delay. Consequently, the court found it unnecessary to delve into the merits of the writ petition and disposed of the same, thereby addressing the concerns raised by the petitioner regarding the tax assessment order and the appeal process under the Act.