2019 (3) TMI 341 - HC - VAT and Sales Tax

Power to waive pre-deposit - Section 68 of the Punjab VAT Act, 2005 - Held that - The Tribunal had directed the appellant(s) to make pre-deposit of ₹ 6 lakhs and ₹ 2 lakhs in VAT Appeal Nos.89 and 98 of 2018 respectively in lumpsum on the basis of offer made by it. It was also directed that after making deposit of the said amount, the First Appellate Authority would hear and decide the appeals on merits. On failure to do so, the order passed by the First Appellate Authority shall remain intact. There is no illegality or perversity in the aforesaid findings recorded by the Tribunal which may warrant interference by this Court. No substantial question of law as claimed by the appellant(s) arises in this appeal - appeal dismissed.

Summary

Issues:
1. Interpretation of the power of the Appellate Authority to waive pre-deposit conditions.
2. Adequacy of discussion of grounds of appeal by the Tribunal.

Analysis:
1. The appellant filed VAT Appeal Nos. 89 and 98 of 2018 under Section 68 of the Punjab VAT Act, 2005 against the order passed by the Punjab Value Added Tax Tribunal. The appellant raised substantial questions of law regarding the Tribunal's justification in not following a previous judgment related to the power of the Appellate Authority to waive pre-deposit conditions in deserving cases. The appellant contended that the Tribunal erred in not considering this aspect, which was highlighted in a judgment of the Hon'ble Punjab and Haryana High Court. The Tribunal had directed the appellant to make a pre-deposit of a specified amount, and the appellant challenged this decision, seeking a waiver based on the mentioned judgment.

2. The appellant, a dealer engaged in the business of manufacturing and resale of specific products, had filed returns for the year 2013-14. The assessment conducted by the Excise and Taxation Officer resulted in an additional demand, which was challenged by the appellant before the Deputy and Taxation Commissioner (Appeals) and subsequently before the Tribunal. The Tribunal partially accepted the appeal and directed the appellant to make a pre-deposit to proceed further with the appeal process. The Tribunal's order required the appellant to deposit specific amounts in both appeals, failing which the order of the First Appellate Authority would stand.

3. The High Court, after considering the arguments presented by the appellant and examining the record, found no illegality or perversity in the Tribunal's decision. The Court concluded that no substantial question of law, as claimed by the appellant, arose from the appeal. Consequently, the Court dismissed the appeals, upholding the Tribunal's order. As a result of the dismissal of the appeals, the applications for condonation of delay in filing the appeals were not addressed, given the outcome of the main appeals.