Appellate pre-admission security demand barred where statute only allows partial tax payment to entertain the appeal.

Section 20(5) of the Punjab General Sales Tax Act, 1948 permits an appellate authority, where satisfied that a dealer cannot pay the assessed tax in full, to entertain the appeal without full payment or after part payment. Section 20(6) applies only after the appeal is entertained and allows the authority to pass such order as it deems just and proper. The power to demand security for the balance tax is not contained in section 20(5), and section 20(6) cannot be used to create that requirement at the pre-entertainment stage. The appellate authority therefore has no statutory power to insist on security as a condition for entertaining the appeal.

---

---

Issues: Whether, while entertaining an appeal under section 20(5) of the Punjab General Sales Tax Act, 1948, the appellate authority could demand security for the balance tax amount from a dealer who was unable to pay the assessed tax in full.

Analysis: Section 20(5) authorises the appellate authority, where satisfied about the dealer's inability to pay, to entertain the appeal without payment of the whole tax or after part payment of it. Section 20(6) operates only after an appeal has been entertained and empowers the appellate authority to pass such order on appeal as it deems just and proper. The power to require security is not found in section 20(5), and section 20(6) cannot be used to import such a power at the pre-entertainment stage.

Conclusion: The appellate authority had no statutory power to insist on security for the balance amount as a condition for entertaining the appeal.

---