Court Upholds Appeal on Tax Deposit Compliance

The court upheld the appeal entertainability based on the tax deposit made by the assessee, deeming it compliant with the amending Act's requirements. The correct rate of tax on the turnover of khair wood was considered to be the amount admitted and deposited by the assessee, as per the filed return. The interpretation of the amending Act favored the assessee, resulting in the dismissal of the revision.

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Issues:
- Appeal entertainability based on tax deposit
- Correct rate of tax on turnover of khair wood
- Interpretation of the amending Act regarding tax deposit for appeal

Appeal Entertainability Based on Tax Deposit:
The assessee, dealing in various goods, filed a return showing turnover of khair wood and calculated tax at 2%. The account books were rejected, and an estimate was made at 3%. An appeal was filed, partly allowed, and then a revision was filed by the Commissioner of Sales Tax. The issue raised was the deposit of tax on khair wood turnover for appeal entertainability. The revising authority held that since the assessee admitted and deposited tax at 2%, the appeal was rightly entertained. The relevant provision required proof of tax payment admitted by the appellant. The amending Act later required deposit of the correct tax amount at the time of appeal filing.

Correct Rate of Tax on Turnover of Khair Wood:
The contention in the revision was that tax should have been deposited at 3% on khair wood turnover, not 2% as admitted by the assessee. The revising authority held that the correct tax amount should be deposited for appeal entertainability. The standing counsel argued that the amending Act necessitated deposit of the correct tax amount, not the amount shown by the assessee. However, the court noted that the deposit made by the assessee was based on the return filed, which included the turnover and tax rate, amounting to an admission by the assessee.

Interpretation of the Amending Act Regarding Tax Deposit for Appeal:
The amending Act required deposit of the correct tax amount for appeal filing, as opposed to the amount admitted by the appellant. The standing counsel contended that this change was intended to ensure the correct tax amount is deposited. The court emphasized that the deposit made by the assessee was in line with the return filed, fulfilling the requirement of the amending Act. The court dismissed the revision, stating that the appeal was rightly entertained as the tax calculated by the assessee had been fully deposited at the time of filing.

In conclusion, the court upheld the appeal entertainability based on the tax deposit made by the assessee, considering it in compliance with the requirements of the amending Act. The correct rate of tax on the turnover of khair wood was deemed to be the amount admitted and deposited by the assessee, as per the return filed. The interpretation of the amending Act favored the assessee's position, leading to the dismissal of the revision.

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