2019 (11) TMI 1624 - HC - VAT and Sales Tax

Maintainability of appeal - non-deposit of the reduced amount - HELD THAT - It is obvious that the stand of the petitioner was and is the readiness and willingness to deposit a sum of ₹ 25,00,000/- instead of the total amount of ₹ 15,00,000/- directed by the First Appellate Authority for entertaining both the appeals. Both the appeals filed by the petitioner(s) for the two aforesaid assessment years be entertained by the First Appellate Authority/D.E.T.C., Ludhiana, subject to deposit of a total sum of ₹ 25,00,000/- towards pre-deposit for both the assessment years, within four (04) weeks from the date of receipt of certified copy of this order.

Summary

Issues:
1. Assessment orders raising demands on account of suppression of sales or purchases.
2. Dismissal of appeals by the First Appellate Authority for non-deposit of reduced amounts.
3. Petitioner's approach to the VAT Tribunal seeking waiver of pre-deposit condition.
4. Filing of writ petitions stating no suppression of sales or purchases and willingness to deposit a specific amount.
5. State Counsel's statement on behalf of the Revenue regarding entertaining the appeals on merits upon deposit of a specified sum.

Analysis:

Issue 1:
The petitioner, a Private Limited Company dealing in Toyota Cars, faced demands totaling over ?5 crores due to alleged suppression of sales or purchases in assessment orders for the years 2012-13 & 2013-14. The Ex-parte Order was passed as the petitioner failed to appear before the Assessing Officer.

Issue 2:
Appeals filed by the petitioner were dismissed by the First Appellate Authority for not meeting the pre-deposit condition. The appeals sought to challenge the reduced amounts of ?10,00,000 and ?5,00,000 for the respective assessment years.

Issue 3:
In response to the dismissal of appeals, the petitioner approached the VAT Tribunal seeking a waiver of the pre-deposit condition for both assessment years, which was pending at the time of filing the writ petitions.

Issue 4:
The writ petitions were filed by the petitioner asserting no suppression of sales or purchases, offering to deposit ?25,00,000 towards pre-deposit to entertain the appeals for both years, and requesting a waiver of the remaining amount based on the case's merits.

Issue 5:
During the hearing, the State Counsel representing the Revenue stated that the Revenue had no objection to directing the First Appellate Authority to decide the appeals on merits if the petitioner deposited ?25,00,000 towards the pre-deposit condition for both assessment years. The court ordered the entertaining of both appeals upon the petitioner's deposit of the specified sum within four weeks.

The High Court's judgment disposed of both petitions by allowing the appeals to be entertained by the First Appellate Authority upon the petitioner's deposit of ?25,00,000 towards pre-deposit for both assessment years, as agreed upon by the State Counsel representing the Revenue.