2015 (4) TMI 318 - HC - VAT and Sales Tax

Restoration of appeal - Appeal dismissed for non compliance of pre deposit order - Held that - Without observing anything on merits and/or without considering anything with respect to the legality and validity of the order passed by the first appellate authority, the learned Tribunal has mechanically passed an order directing the appellant to deposit the amount of pre-deposit as directed by the first appellate authority. When the second appeals were against the order passed by the first appellate authority dismissing the appeal on nonpayment of pre-deposit of the aforesaid amount, the learned Tribunal was required to decide the appeals on merits and was required to consider the legality and validity of the order passed by the first appellate authority directing the appellant to decide the aforesaid amount and dismissing the appeal on non-payment of the amount of pre-deposit. Impugned order passed by the learned Tribunal cannot be sustained and the matters are to be remanded to the learned Tribunal to decide the appeals afresh in accordance with law and on merits so as to enable the learned Tribunal to consider the orders passed by the first appellate authority directing the appellants to pay the aforesaid amount by way of pre-deposit and dismissing the appeals on non-payment of the pre-deposit. While considering the issue of pre-deposit, even the learned Tribunal is required to consider the provisions of the Act, more particularly, section 73(4) of the Gujarat Value Added Tax Act. - Matter remanded back - Decided in favour of assessee.

Summary

Issues:
Appeal against dismissal for non-payment of pre-deposit amount.

Analysis:
The judgment involves an appeal against a common order passed by the Gujarat Value Added Tax Tribunal dismissing appeals for non-payment of pre-deposit amounts directed by the first appellate authority. The original appellant challenged the impugned order, which directed them to deposit specific amounts for the assessment years 2008-2009 and 2009-2010. The appellant failed to make the pre-deposit payments, leading to the dismissal of their appeals by the first appellate authority. Subsequently, the appellant appealed to the learned Tribunal, which also directed them to pay the pre-deposit amounts within a specified period. However, as the appellant did not comply, the learned Tribunal dismissed the appeals. The High Court observed that the learned Tribunal did not assess the merits of the case or the validity of the first appellate authority's order regarding the pre-deposit amounts. The High Court found the learned Tribunal's order lacking reasoning and directed a fresh consideration of the appeals on merits, emphasizing the need to evaluate the legality and validity of the pre-deposit directive. The High Court stressed the importance of the Tribunal's assessment of the provisions of the Gujarat Value Added Tax Act, particularly section 73(4), in deciding on pre-deposit issues.

The High Court allowed the appeals, quashed the orders of the learned Tribunal, and remanded the matters for fresh consideration within two months. The Court instructed the Tribunal to provide reasoned orders, evaluate the first appellate authority's pre-deposit directives, and consider the relevant provisions of the Gujarat Value Added Tax Act. The judgment highlighted the necessity for a comprehensive review of the pre-deposit issue and emphasized the Tribunal's obligation to assess the legality and validity of the pre-deposit directive in accordance with the law.

Additionally, the High Court noted that the appellants had already deposited 10% of the principal tax liability based on an interim order, which would be retained by the department pending the final outcome of the appeals. The Court concluded by stating that no costs were awarded in this matter.