2016 (12) TMI 191 - HC - VAT and Sales Tax

Pre-deposit of ₹ 15 lakhs - dismissal of appeal for non-deposit of pre-deposit - Held that - instead of ₹ 15 lakhs, as ordered by the learned tribunal, if the petitioner is directed to pay / deposit ₹ 10 lakhs by way of pre-deposit to be deposited within a period of six weeks from today, the Appeal is directed to be decided by the learned First Appellate Authority on merits and till then rest of the recovery is stayed, it will meet the ends of justice. The impugned orders passed by the learned tribunal is hereby quashed and set aside. Even the order passed by the learned First Appellate Authority dismissing the Appeal is also hereby quashed and set aside and the learned First Appellate Authority is hereby directed to decide and dispose of the Appeal on merits on condition that the petitioner shall deposit ₹ 10 lakhs as pre-deposit within a period of six weeks from today. It goes without saying that on such deposit of ₹ 10 lakhs as pre-deposit, the learned First Appellate Authority to decide the Appeal on merits and on such deposit rest of the demand shall stand stayed - appeal restored on deposit of ₹ 10 lakhs.

Summary

Issues:
1. Dismissal of appeal due to non-deposit of pre-deposit amount of ?15 lakhs.
2. Request for reconsideration of pre-deposit amount.
3. Setting aside of orders by the tribunal and First Appellate Authority.

Analysis:
1. The petitioner challenged the orders of the Gujarat Value Added Tax Tribunal for dismissing the appeal due to non-deposit of the pre-deposit amount of ?15 lakhs. The learned tribunal had directed the petitioner to make the pre-deposit, which was not complied with, leading to the dismissal of the appeal.

2. The petitioner argued for reconsideration of the pre-deposit amount, suggesting a reduced amount of ?10 lakhs instead of the initial ?15 lakhs. The court considered the submissions made by both parties and decided that a pre-deposit of ?10 lakhs within six weeks would suffice, allowing the appeal to be decided on merits by the First Appellate Authority.

3. The High Court, after hearing the arguments and considering the circumstances, quashed and set aside the orders passed by the tribunal and the First Appellate Authority. The court directed the First Appellate Authority to decide the appeal on merits upon the petitioner's deposit of ?10 lakhs as the pre-deposit within the specified time frame. It was emphasized that upon such deposit, the rest of the recovery would be stayed, ensuring justice is served.

This judgment highlights the importance of complying with pre-deposit requirements in appeals and the court's discretion to modify such amounts based on the circumstances of the case.