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2016 (10) TMI 289 - HC - VAT and Sales TaxRestoration of appeal - quantum of pre-deposit amount - Held that - the pre-deposit requirement as modified by the Tribunal is barely 10% of the principal tax ignoring the penalty component. The Tribunal has perused the materials on record and come to the conclusion that no further relaxation can be granted - appeal restored on the condition that the appellant satisfies the pre-deposit requirement as provided by the Tribunal latest by 31.12.2016 - appeal dismissed.
Issues:
Challenge to Value Added Tax Tribunal's order for non-payment of predeposit amounts. Analysis: The appeals were filed by the assessee challenging the Value Added Tax Tribunal's order dismissing the appeals due to non-payment of predeposit amounts. The Assessing Officer had conducted assessments for three separate years, with the appellant being exparte in one case. The total tax demand, excluding penalty, was approximately ?9.93 crores. The appellate Commissioner required the appellant to pay 20% of the principal tax, which the appellant failed to do, resulting in the dismissal of the appeals. The Tribunal then directed the appellant to deposit 10% of the tax demand, which was also not complied with, leading to the dismissal of all three appeals. The appellant subsequently approached the High Court. The Tribunal's modified predeposit requirement was set at 10% of the principal tax, excluding the penalty component. The Tribunal reviewed the evidence and concluded that no further relaxation could be granted, a decision upheld by the High Court. While refraining from commenting on the merits of the case to avoid prejudicing the assessee, the High Court noted the substantial evidence collected by the department indicating VAT evasion. Despite the appellant's argument regarding the doubled value of imported goods for tax assessment, the Court deemed this issue insignificant given the minimal predeposit requirement. In light of the circumstances, the High Court dismissed the tax appeals but allowed for a potential reevaluation if the appellant fulfills the predeposit requirement by the specified deadline. If the predeposit is made by the deadline, the Commissioner will then hear the appeals on their merits.
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