2017 (7) TMI 1020 - HC - VAT and Sales Tax

Pre-deposit - direction of part payment - Held that - the Tribunal has observed that, at this interlocutory stage it does not want to express opinion - the impuged order is quashed and set aside - appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against Tribunal's order for pre-deposit amount; Lack of reasons provided by Tribunal for directing part payment; Failure to consider arguments raised by appellant; Reference to previous court order highlighting the need for Tribunal to express prima facie view on contentions; Quashing of impuged order and parties to appear before Tribunal for reconsideration.

Analysis:
The present appeal before the High Court was filed against the Tribunal's order directing a pre-deposit of ?12 lakh, which was in contrast to the Commissioner (Appeals) order of ?22,90,172. The appellant contended that the Tribunal failed to provide reasons for the directed part payment and did not address the various aspects raised by the appellant, including the claim for a refund exceeding ?25 lakh. The Tribunal's decision was criticized for not prima facie dealing with the arguments presented before it, leading to a lack of consideration for the appellant's contentions.

The counsel for the Revenue supported the Tribunal's order, stating that the Tribunal had reduced the part payment amount after considering the arguments presented. The High Court referred to a previous court order in a similar matter, emphasizing the importance of the Tribunal expressing a prima facie view on all contentions raised. The court highlighted the necessity for the Tribunal to demonstrate that it had applied its mind to the issues at hand, even at an interim stage, and to clarify the basis for determining the deposit amount.

In light of the above observations, the High Court quashed and set aside the impuged order, directing the parties to appear before the Tribunal for a fresh consideration of the matter. The Tribunal was instructed to reevaluate the issue after hearing both parties, taking into account the guidance provided in the previous court order. The appeal was allowed by the High Court, with no costs imposed on the parties. The parties were instructed to act based on an authenticated copy of the court's order, and a specific date for appearance before the Tribunal was set.