2020 (9) TMI 1148 - HC - VAT and Sales Tax

Validity of assessment order - order is primarily assailed on the ground that after an order of remand has been passed by the appellate authority there would be no justification for the Tribunal to require the assessee to deposit even 10% amount - HELD THAT - The ends of justice would be met if the revisionist is directed to furnish bank guarantee to the extent of 10% of the tax amount within four weeks from today before the authority concerned. In the event such guarantee is deposited the appellate authority shall proceed to decide the appeal finally expeditiously. With the aforesaid observation this revision stands disposed of.

Summary

Issues:
1. Requirement of depositing 10% of disputed tax amount as a precondition for hearing the appeal.
2. Adjudication of similar issues in the previous financial year.
3. Proposal for furnishing a bank guarantee instead of depositing 10% tax amount.

Analysis:
1. The judgment deals with an appeal filed by the assessee against an assessment order pending consideration. The Tribunal had directed the assessee to deposit 10% of the disputed tax amount as a precondition for the hearing of the appeal, protecting the assessee to the extent of 90%. This directive was challenged on the basis that similar issues from the previous financial year were under consideration by the assessing authority after an order of remand by the appellate authority. The contention was that there was no justification for requiring the assessee to deposit any amount, even 10%.

2. The learned State Counsel did not dispute the factual proposition that the issues raised in the pending appeal had already been adjudicated in the previous year and the matter had been remitted back to the Assessing Authority. Considering this, the judgment concluded that the ends of justice would be met by directing the revisionist to furnish a bank guarantee equivalent to 10% of the tax amount within four weeks. This alternative proposal aimed to address the concerns raised by the assessee regarding the deposit requirement and the ongoing adjudication of similar issues.

3. In light of the above, the judgment disposed of the revision by instructing the revisionist to provide the bank guarantee within the stipulated timeframe. It further directed that upon the deposit of the guarantee, the appellate authority should proceed to decide the appeal promptly. Additionally, the judgment emphasized that the concerned Authority/Official should verify the authenticity of the order from the official website of the High Court Allahabad and act accordingly without waiting for the submission of a certified copy of the order. This provision aimed at expediting the process and ensuring timely compliance with the directives outlined in the judgment.