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2021 (8) TMI 47 - HC - VAT and Sales TaxMaintainability of appeal - appeal dismissed on the ground of failure to make the mandatory pre-deposit under Section 77(4) of the OVAT Act read with Rule 87 of the OVAT Rules - HELD THAT - The learned counsel for the Petitioner states that the Petitioner will be prepared to make the above pre-deposit of ₹ 3,25,12,195/- within a period of four weeks with the Opposite Party-Department without prejudice to its rights and contentions and the appeal may be revived before the ACST (Appeals) subject to compliance of the above directions. Subject to the Petitioner depositing with the Department not later than 1st September, 2021 the aforementioned sum of ₹ 3,25,12,195/-, the impugned order dated 19th July, 2021 passed by the Additional Commissioner of Sales Tax (Appeal) Central Zone, Odisha, Cuttack shall stand set aside and the Petitioner s Appeal Case No.AA-106102010000013/2020-21 shall stand revived before the Additional Commissioner of Sales Tax (Appeal) Central Zone, Odisha, Cuttack before whom it will be listed for directions on 8 th September, 2021 - petition disposed off.
Issues involved:
1. Assessment order passed under Odisha Value Added Tax, 2004 (OVAT Act) for the period from 1st April, 2013 to 31st March, 2015. 2. Appeal filed by the Petitioner before the Additional Commissioner of Sales Tax of CT & GST (Appeals). 3. Pre-deposit requirement under Section 77(4) of the OVAT Act. 4. Dismissal of the Petitioner's appeal by the ACST (Appeals) for failure to make the mandatory pre-deposit. 5. Contention of the Petitioner regarding insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). 6. Directions issued by the High Court regarding the revival and disposal of the appeal. Analysis: 1. The Petitioner had initially filed a writ petition challenging an assessment order passed under the OVAT Act for a specific period. The court directed the Petitioner to file an appeal before the Additional Commissioner of Sales Tax of CT & GST (Appeals) after disposing of the first round of litigation. 2. The Petitioner filed an appeal before the ACST (Appeals) along with an application for waiver of pre-deposit as required by Section 77(4) of the OVAT Act. The ACST (Appeals) ordered a pre-deposit of a specific amount, and when the Petitioner failed to comply, a notice was issued for non-payment of the pre-deposit. 3. The Petitioner contended that at the time of the assessment order, insolvency proceedings were ongoing under the IBC, resulting in a moratorium being issued by the NCLT. The Petitioner argued that the assessment order was invalid due to these circumstances and should not be required to make any pre-deposit. 4. The ACST (Appeals) dismissed the Petitioner's appeal for failure to make the mandatory pre-deposit under Section 77(4) of the OVAT Act. However, during the proceedings, the Petitioner expressed willingness to make the pre-deposit within a specified timeframe, leading to certain directions being issued by the High Court. 5. The High Court directed that upon the Petitioner making the pre-deposit, the impugned order of the ACST (Appeals) would be set aside, and the appeal would be revived for further proceedings. The appeal was to be heard on its merits within a specific timeframe, and if successful, the pre-deposit amount would be refunded to the Petitioner. 6. Additionally, the High Court ordered that no coercive action should be taken against the Petitioner until the appeal was disposed of by the ACST (Appeals). Both parties were instructed to cooperate to ensure timely disposal of the appeal without unnecessary adjournments, thereby concluding the writ petition with specific directions for compliance.
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