2010 (7) TMI 948 - HC - VAT and Sales Tax

Maintainability of appeal - Non-deposit of 25% tax - section 62(5) of the PVAT Act - jurisdiction - Held that - In view of undisputed position that the petitioner has paid more than 25 per cent of the amount, the view taken by the appellate authority that 25 per cent should be worked out on the balance amount of tax due, cannot be accepted - matter remitted to the appellate authority for a fresh decision on the merits - appeal allowed by way of remand.

Summary

Issues:
Quashing of order under Punjab Value Added Tax Act for non-deposit of 25% tax.

Analysis:
The judgment delivered by the High Court pertains to a petition seeking the quashing of an order passed by the appellate authority under the Punjab Value Added Tax Act, 2005. The petitioner had appealed against the order for non-deposit of 25% of the tax amount. The counsel for the petitioner argued that a significant portion of the tax had already been paid, amounting to more than 25% of the total due. Additionally, the petitioner had raised questions regarding jurisdiction, putting the entire assessed tax amount in contention.

The court noted that the petitioner had indeed paid more than 25% of the disputed amount, rendering the appellate authority's decision to require 25% deposit on the remaining tax balance as unacceptable. Consequently, the court quashed the impugned order dated November 5, 2009, marked as annexure P9, and remitted the matter back to the appellate authority for a fresh decision based on the merits and in compliance with the law. The petitioner was directed to appear before the authority for further proceedings on November 15, 2010, thereby disposing of the petition effectively.