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TMI Blog2019 (6) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... products by the Rice Millers - rule 21(6) of Punjab VAT Rules, 2005. HELD THAT:- As per the provisions of Section 62(5) of the Act, 25% of the amount has to be deposited for entertainment of the appeal. However, as per the decision of this Court in PUNJAB STATE POWER CORPORATION LIMITED VERSUS THE STATE OF PUNJAB AND OTHERS [ 2016 (2) TMI 245 - PUNJAB AND HARYANA HIGH COURT ], the First Appellate Authority has a power to waive off the precondition in appropriate cases - It would be pertinent to note here that additional demand in the present case is with regard to tax only and the appellant is required to deposit 25% of the tax amount. The condition imposed by the First Appellate Authority and the Tribunal for entertainment of appeal was re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, Ld. Tribunal was justified in directing the appellant to deposit 25% of the tax in spite of the fact that appellant is incurring huge losses as is evident from the Balance Sheets and is not in a position to deposit the amount? ( ii) Whether on the facts and circumstances of the case, the Assessing Authority was justified in reversing Input Tax Credit on account of purchase tax under Section 19(4) of the Punjab VAT Act on closing stock of wheat and rice? ( iii)Whether on the facts and circumstances of the case, the Assessing Authority was justified in reversing Input Tax Credit on retention of bye products by the Rice Millers under rule 21(6) of Punjab VAT Rules, 2005? The facts necessary for adjudication of the appeal are that the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hs, failing which the order of the First Appellate Authority shall remain intact, hence the present appeal. Section 62(5) of the Act is quoted below: CHAPTER-XI APPEAL AND REVISION S.62. First appeal. xx xx xx ( 5) No appeal shall be entertained, unless such appeal is accompanied by satisfactory proof of the prior minimum payment of twenty-five per cent of the total amount of additional demand, penalty and interest, if any. Explanation.- For the purposes of this sub-section additional demand means any tax imposed as a result of any order passed under any of the provisions of this Act or the rules made thereunder or under the Central Sales Tax Act, 1956 (Act No. 74 of 1956). As per Section 62(5) of the Act, no appeal shall be entertained unl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... priate cases where the first appellate authority is satisfied that the entire purpose of the appeal will be frustrated or rendered nugatory by allowing the condition of pre-deposit to continue as a condition precedent to the hearing of the appeal before it. Therefore, the power to grant interim protection/injunction by the first appellate authority in appropriate cases in case of undue hardship is legal and valid. As a result, question (c) posed is answered accordingly. The vires of the aforesaid provision was upheld opining that the First Appellate Authority in certain circumstances has the power to waive off the requirement of pre-deposit in certain cases. The power of waiver is not to be exercised as a routine. Learned counsel for the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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