2022 (4) TMI 1251 - HC - VAT and Sales Tax

Violation of principles of natural justice - opportunity to submit documents / proofs in respect of purchases, not provided to the Appellant - when the proceedings against the Appellant have gone on ex-parte, whether the Tribunal has erred in law and on facts to order pre-deposit of amounts? - Whether a pre condition to hear the appeal can be set when the Appellant has not even been heard once and its case has not been decided on merits at all? - HELD THAT - We need not now proceed to answer the substantial questions of law formulated by this Court at the time of admission of the appeal. The impugned order passed by the Tribunal dated 4th September, 2018 is hereby quashed and set aside. The writ applicant shall deposit the amount of ₹ 8 Lakh and ₹ 13,000/- respectively with the First Appellate Authority within a period of two weeks from today. If the requested amounts are deposited towards the GVAT dues and CST dues, then the First Appellate Authority shall hear the appeals filed by the appellant herein on merits and dispose them of in accordance with law. Tax appeal disposed off.

Summary

Issues:
1. Appeal against order of Gujarat Value Added Tax Tribunal
2. Substantial questions of law regarding non-compliance and pre-deposit of amounts

Analysis:
1. The tax appeal was filed by a dealer (textile entity) against the order of the Gujarat Value Added Tax Tribunal. The Tribunal had dismissed the appeal for non-compliance with the pre-deposit order. The appellant raised substantial questions of law challenging the Tribunal's decision. The Tribunal's order stated that despite granting sufficient time, the appellant failed to comply with the order to produce challan or receipt, leading to the dismissal of the appeal.

2. The substantial questions of law raised by the appellant included issues related to the Tribunal's failure to provide an opportunity to submit documents and proofs, the ex-parte nature of the proceedings, and the imposition of a pre-deposit requirement before hearing the appeal. During the hearing, the appellant expressed readiness to make a pre-deposit of 20% of the total liability fixed by the Assessing Officer. The appellant agreed to deposit ?8 lakh towards GVAT dues and ?13,000 towards CST dues.

3. In response to the appellant's readiness to make the pre-deposit, the High Court quashed and set aside the Tribunal's order. The Court directed the appellant to deposit the specified amounts with the First Appellate Authority within two weeks. Upon receipt of the deposits, the First Appellate Authority was instructed to hear the appeals on merits and dispose of them in accordance with the law. Consequently, the tax appeal and the connected cases were disposed of by the High Court, bringing the matter to a conclusion.