2016 (4) TMI 6 - HC - VAT and Sales Tax

Sustainability of Annexures A-2 and A-3 - in view of the decision of the Hon ble High Court in cases of vires of Section 62(5) of PVAT Act - Dismissal of appeal for non-deposit of total demand - Business of sale of cars and its spare parts etc. - Held that - in view of the decision of this court in Punjab State Power Corporation Limited v. The State of Punjab and others 2016 (2) TMI 245 - PUNJAB AND HARYANA HIGH COURT , the orders dated 27.11.2014 (Annexure A-2)and dated 1.10.2015 (Annexure A-3) passed by the Tribunal are not sustainable and set aside. - Matter remanded back

Summary

Issues:
1. Appeal under Section 68 of the Punjab Value Added Tax Act, 2005 against Tribunal's order.
2. Sustainability of Tribunal's order in light of pending petition in High Court.
3. Legality of Tribunal's orders in view of High Court's decision on vires of Section 62(5) of PVAT Act.

Issue 1:
The appellant, a registered dealer, challenged the final assessment creating additional demand. The Deputy Excise and Taxation Commissioner (Appeals) directed deposit of 25% of the demand. The appellant appealed, but the Tribunal upheld the order. The High Court held that the power to grant interim protection/injunction is embedded in Section 62(5) of the PVAT Act. The Court concluded that the first appellate authority can waive the pre-deposit condition in deserving cases to prevent the appeal's purpose from being frustrated. The Court set aside the Tribunal's order and remanded the matter to the Deputy Excise and Taxation Commissioner (Appeals).

Issue 2:
The Tribunal's order was challenged on the grounds of sustainability in law and waiting for the outcome of a pending petition in the High Court. The High Court referred to a previous judgment where it was held that the first appellate authority has the power to grant interim protection/injunction under Section 62(5) of the PVAT Act. The Court set aside the Tribunal's order and remanded the matter to the Deputy Excise and Taxation Commissioner (Appeals) in line with the previous judgment.

Issue 3:
The legality of the Tribunal's orders was questioned concerning the vires of Section 62(5) of the PVAT Act. The High Court referred to a judgment stating that the first appellate authority can waive the pre-deposit condition in appropriate cases to prevent the appeal's purpose from being frustrated. The Court set aside the Tribunal's orders and remanded the matter to the Deputy Excise and Taxation Commissioner (Appeals) based on the principles outlined in the previous judgment.

In conclusion, the High Court set aside the Tribunal's orders and remanded the matter to the Deputy Excise and Taxation Commissioner (Appeals) in accordance with the legal principles established in a previous judgment regarding the power to grant interim protection/injunction under Section 62(5) of the PVAT Act.