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2015 (1) TMI 638 - HC - VAT and Sales TaxValidity of Tribunal s action on decided appeal on merits Appeal already dismissed by FAA on failure to make the pre-deposit - Held that - The appeal before the Tribunal was directed against the order of the first appellate authority imposing certain condition of pre-deposit before entertaining the appeal on merits - The Tribunal, instead of deciding the correctness of such an order, proceeded to decide the appeal on merits and allowed it as well as it has been already held in ANILKUMAR Versus STATE OF GUJARAT 2014 (4) TMI 730 - GUJARAT HIGH COURT wherein it has been held that the Tribunal committed serious error in examining the appellants grievances on the merits of the order of assessment the Tribunal could not have bypassed the FAA and statutory requirement of pre-deposit, unless it was waived by an order in writing thus, the order passed by the Gujarat Value Added Tax Tribunal is set aside the matter is remitted back to the Tribunal for fresh consideration and disposal in accordance with law Decided in favour of petitioner revenue.
Issues:
Appeal against Tribunal's judgment allowing appeal on merits without predeposit. Analysis: The High Court heard the appeal challenging the Tribunal's judgment dated 22.08.2013, where the Tribunal allowed the appeal on merits without addressing the issue of predeposit. The Court highlighted that the Tribunal should have focused on the validity of the order requiring predeposit by the first appellate authority. Referring to previous judgments, the Court emphasized that the appeal could not have been entertained without complying with the predeposit requirement unless waived in writing. The Court criticized the Tribunal's practice of deciding appeals on merits without addressing predeposit issues, noting that this was not an isolated incident. The Court cited the case of State of Gujarat v. Tudor India Ltd. where a similar trend was observed and stressed the importance of adhering to the statutory requirement of predeposit before delving into the merits of the case. The Court further referenced the decision in Benara Valves Limited v. Commissioner of Central Excise, which underscored the significance of predeposit before proceeding with an appeal. The Court reiterated that the Tribunal should not bypass the requirement of predeposit and delve into the merits of the case prematurely. The Court emphasized that parties should have the opportunity to challenge the order on predeposit before moving to the merits of the case. The Court also highlighted the need to follow established legal procedures and not circumvent the requirement of predeposit. The Court directed the appeal to be remanded back to the Tribunal for fresh consideration, emphasizing the importance of adhering to legal procedures and not allowing shortcuts in the appellate process. In conclusion, the High Court allowed the Tax Appeal, quashed the Tribunal's judgment, and remanded the appeal back for fresh consideration while stressing the importance of complying with the statutory requirement of predeposit. The Court also imposed a cost on the appellant for attempting to argue the appeal without proper documentation, emphasizing the need for thorough preparation and assistance in legal proceedings to avoid inconvenience and loss of court's time.
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