2014 (9) TMI 849 - HC - VAT and Sales Tax

Waiver of pre deposit - appeal dismissed on non-deposit of the pre-deposit amount, i.e. 60% of the tax amount - Held that - Further time is granted to the petitioner to deposit / make the payment of 60% of the tax demand (as directed earlier by the Tribunal) within a period of FOUR WEEKS from today and on such deposit being made, the First Appellate Authority is directed to hear, decide and dispose of the First Appeal preferred by the petitioner on merits and in accordance with law. However, if aforesaid deposit is not made within a period of four weeks - Decided partly in favour of assessee.

Summary

Issues:
Challenge to order of Gujarat Value Added Tax Tribunal for non-deposit of pre-deposit amount leading to dismissal of Tax Appeal.

Analysis:
The petitioner challenged an order by the Gujarat Value Added Tax Tribunal for not depositing the pre-deposit amount, resulting in the dismissal of the Tax Appeal. Initially, the First Appellate Authority directed the petitioner to deposit 20% of the total liability, including tax, interest, and penalty, as pre-deposit. Due to non-compliance, the First Appellate Authority dismissed the appeal. Subsequently, the petitioner approached the Tribunal, which then ordered a 60% pre-deposit of the tax amount, which the petitioner failed to fulfill, leading to the appeal's dismissal. Consequently, the petitioner filed a Special Civil Application against the Tribunal's decision.

During the proceedings, the petitioner's counsel requested an extension of four weeks to deposit the 60% tax amount as directed by the Tribunal, ensuring the First Appellate Authority could then hear and decide the appeal on its merits. The Government Pleader argued that ample time was already given to comply with the previous orders, and urged the court to dismiss the Special Civil Application. However, the final decision was left to the Court's discretion.

After considering the arguments from both parties and the circumstances of the case, the Court granted the petitioner an additional four weeks to make the required 60% tax deposit as instructed by the Tribunal. Upon completion of the deposit, the First Appellate Authority was directed to proceed with hearing, deciding, and disposing of the appeal in accordance with the law and on its merits. Failure to make the deposit within the specified time frame would result in the First Appellate Authority not proceeding with the appeal. The Court disposed of the petition with the mentioned directions, without any order as to costs.