Pre-deposit in second sales tax appeal applies where appellate tax orders form part of the assessment process.

Section 43(5) of the Delhi Sales Tax Act, 1975 was construed to cover a second appeal before the Sales Tax Tribunal, because an appellate order determining tax liability was treated as part of the assessment process and the original assessment was regarded as merging in the appellate order. The pre-deposit condition therefore applied to the second appeal, and the Tribunal could not entertain it without compliance. The High Court also declined interference under article 226 because an effective statutory appellate remedy existed and the assessment and appellate orders were not fit for writ intervention.

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Issues: (i) Whether section 43(5) of the Delhi Sales Tax Act, 1975 applies to a second appeal before the Sales Tax Tribunal so as to require deposit of the tax demanded before the appeal can be entertained. (ii) Whether the writ court should interfere under article 226 of the Constitution of India against the Tribunal and assessment orders when an alternative statutory remedy exists.

Issue (i): Whether section 43(5) of the Delhi Sales Tax Act, 1975 applies to a second appeal before the Sales Tax Tribunal so as to require deposit of the tax demanded before the appeal can be entertained.

Analysis: The expression used in section 43(5) is broad and refers to an appeal before an appellate authority against an order of assessment. The appellate process under the Act was treated as part of the assessment machinery, and an appellate order determining tax liability was held to fall within the concept of an assessment order. The reasoning was supported by the view that a tax appeal is a continuation of the assessment and that the original assessment merges in the appellate order. On that basis, the statutory condition of deposit was held to govern even a second appeal.

Conclusion: Section 43(5) applies to a second appeal before the Tribunal, and the appeal could not be entertained without compliance with the deposit requirement.

Issue (ii): Whether the writ court should interfere under article 226 of the Constitution of India against the Tribunal and assessment orders when an alternative statutory remedy exists.

Analysis: The petitioner had an effective remedy under the Act before the Tribunal, and the correctness of the assessment and appellate orders was therefore not fit for writ interference. The existence and invocation of the statutory appellate remedy weighed against exercise of writ jurisdiction.

Conclusion: Interference under article 226 was declined.

Final Conclusion: The writ petition failed on the merits of the statutory interpretation and no substantive relief was granted, though the appeal was directed to be restored only upon compliance with the earlier interim order.

Ratio Decidendi: For the purpose of section 43(5) of the Delhi Sales Tax Act, 1975, an appellate order deciding tax liability is part of the assessment process and is treated as an order of assessment, so the pre-deposit condition applies even to a second appeal.

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