2013 (3) TMI 588 - HC - VAT and Sales Tax

Summary

Issues Involved:
The appeal under section 62 of the Punjab Value Added Tax Act, 2005 arising from an order passed by the Chairman, Value Added Tax, Tribunal, Punjab, Chandigarh, challenging the direction to deposit 25 per cent of the additional amount of tax, penalty, and interest within a specified period.

Judgment Details:

Issue 1: Compliance with Section 62(5) of the Act

The appellant challenged the order directing the deposit of 25 per cent of the additional demand, arguing that the amended provisions clarified the requirement to deposit 25 per cent of the total amount of additional demand. The court noted the amendment and clarified that the deposit should be based on the difference between the tax already paid and the additional demand, resolving any ambiguity in the statute. The court upheld the order passed by the Tribunal, emphasizing the clarity brought by the amendment.

Issue 2: Extension of Time for Deposit

While upholding the Tribunal's order, the court granted an extension of four weeks for the appellants to deposit the required amount of tax, interest, and penalty. This extension was provided to facilitate compliance with the order within a reasonable timeframe.

Cost Recovery and Disposal of Appeal

The court highlighted that costs were imposed on the appellant for non-compliance with statutory provisions, and emphasized the recovery of the imposed cost by the department. The appeal was disposed of with instructions for necessary steps to recover the imposed amount, ensuring accountability for non-compliance with legal requirements.

This summary provides a detailed overview of the judgment, addressing the issues raised by the appellant, the court's interpretation of the relevant legal provisions, the extension granted for compliance, and the directives regarding cost recovery and appeal disposal.