Pre-deposit requirement for sales tax appeals upheld where the challenge remained one against assessment

The proviso to section 22(1) of the C.P. and Berar Sales Tax Act, 1947 requires satisfactory proof of payment of the assessed tax, and any penalty, before a first or second appeal against an assessment order can be admitted. A challenge to cancellation of the registration certificate did not alter the character of the proceeding, because that issue was only a possible ground for exemption from assessment and the appeal remained one against assessment. The condition of prior payment therefore continued to apply, and the requirement to deposit the assessed tax before the appeal could be heard was upheld.

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Issues: Whether the appellate authority could require payment of the assessed tax before hearing an appeal challenging an assessment order under the C.P. and Berar Sales Tax Act, 1947.

Analysis: The proviso to section 22(1) bars admission of a first or second appeal against an order of assessment unless satisfactory proof of payment of the tax, with penalty if any, in respect of which the appeal has been preferred is produced. The challenge to cancellation of the registration certificate did not change the character of the appeal, since that question was only a possible ground for exemption from assessment and the appeal remained one against assessment. Accordingly, the condition of prior payment applied.

Conclusion: The requirement to deposit the assessed tax before the appeal could be heard was valid, and the petitioner's challenge failed.

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