2014 (4) TMI 1076 - HC - VAT and Sales Tax

Condition of Pre-deposit Waiver Appellant was required to deposit sum as additional demand including interest vide assessment order However, appeal was filed against assessment order along with application for entertainment of appeal without payment of additional demand and stay of its recovery proceedings Joint Commissioner dismissed appeal in default being not maintainable as appellant had failed to comply requirement to deposit additional demand Held that - appellant directed to deposit reduced sum as condition precedent for hearing of appeal before Joint Commissioner (Appeals), whereupon, Joint Commissioner (Appeals), shall hear appeal on merits Decided partially in favour of Appellant.

Summary

Issues:
1. Appeal against additional demand and interest for the assessment year 2001-02.
2. Dismissal of appeal by Joint Excise and Taxation Commissioner (Appeals) and Tribunal.
3. Request for reduction of the deposit amount due to the appellant's financial condition.

Analysis:
1. The appellant approached the court under section 36 of the Haryana Value Added Tax Act, 2003, challenging an order requiring a deposit of &8377;4,82,480 as additional demand, including interest, for the assessment year 2001-02. The appeal was dismissed by the Joint Excise and Taxation Commissioner (Appeals) for failure to comply with the interim order to deposit the amount in monthly instalments and furnish security. The Tribunal also dismissed the appeal, leading to the current appeal.

2. The appellant contested the orders of the Joint Excise and Taxation Commissioner (Appeals) and the Tribunal, citing the company's poor financial state due to winding up proceedings. The appellant requested a reduction in the deposit amount to ensure compliance and a fair hearing of the appeal on its merits. The State counsel, however, supported the previous orders.

3. Considering the appellant's financial difficulties, the court directed the appellant to deposit a reduced sum of &8377;2 lakhs as a condition for the appeal to be heard by the Joint Excise and Taxation Commissioner (Appeals). The deadline for the deposit was set, and failure to comply would result in the dismissal of the present appeal. This decision aimed to balance the appellant's financial constraints with the need for compliance with the tax regulations.