2011 (5) TMI 873 - HC - VAT and Sales Tax

Summary

Issues involved: Appeal u/s 68(2) of Punjab Value Added Tax Act, 2005 challenging order of Value Added Tax Tribunal regarding pre-deposit requirements for maintaining appeal.

Summary:

Issue 1: Whether the appeal can be maintained without paying the balance amount of pre-deposit as required by law.

The State appealed under section 68(2) of the Act to set aside the Tribunal's order. The Tribunal found the deposit made by the assessee to be over 25% of the total demand, allowing the appeal to proceed on merits. The State contended that since the deposit was made before the demand, the appeal should not be heard on merits. However, the court held that there is no requirement to deposit 25% after the demand is raised, and the deposit already made can be considered, citing a previous court order.

Issue 2: Whether the amount of tax already deposited can be counted towards the pre-deposit requirement for filing an appeal.

The Tribunal's decision was based on the deposit being more than 25% of the total demand, allowing the appeal to proceed. The State argued that the deposit made before the demand should not be considered. The court disagreed, stating that the deposit already made can be taken into account, referencing a previous court judgment. The State's counsel did not contest the applicability of the earlier court decision.

In conclusion, the court found no substantial question of law and dismissed the appeal.