Statutory right of appeal may be conditioned by pre-deposit rules, and section 20(5) was upheld as valid.

The right of appeal is a statutory right, not an inherent or fundamental one, and the legislature may regulate it by imposing conditions such as pre-deposit of tax or penalty if those conditions do not violate the Constitution. Tested against article 14, section 20(5) of the Punjab General Sales Tax Act, 1948 was treated as a valid regulatory measure governing entertainment of appeals rather than an impermissible deprivation of appellate remedy. The constitutional challenge to its vires therefore failed, and the provision was upheld as constitutionally valid.

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Issues: Whether section 20(5) of the Punjab General Sales Tax Act, 1948, requiring proof of payment of tax or penalty as a condition for entertaining an appeal, was constitutionally valid.

Analysis: The right of appeal is not a fundamental or inherent right but exists only where conferred by statute. A legislature that creates such a right may also regulate its exercise by imposing conditions, including pre-deposit of tax or penalty, so long as those conditions do not transgress the Constitution. The provision was tested on the touchstone of article 14 and was held to be a valid regulatory measure rather than an impermissible deprivation of the appellate remedy.

Conclusion: Section 20(5) was held to be constitutionally valid and the challenge to its vires failed.

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