Pre-deposit for sales tax appeals applies to the full outstanding demand, without splitting tax and penalty components.

The expression "balance" in the pre-deposit rule was construed to mean the entire outstanding demand. Where an appeal challenged an assessment order imposing both tax and penalty, the amount payable for admission could not be bifurcated by applying separate percentages to tax and penalty components. The statutory pre-deposit requirement therefore applied to the total balance due from the dealer, and the demand had to be computed on the full outstanding amount rather than split up for appeal admission.

---

---

Issues: Whether, for admission of an appeal under section 38(3) of the M.P. General Sales Tax Act, 1958, the amount payable had to be computed on the total balance due without splitting the demand into tax and penalty components.

Analysis: The reference turned on the meaning of the expression "balance" in section 38(3). The Court followed its earlier view that where an appeal is filed against an assessment order imposing both tax and penalty, the statutory pre-deposit requirement is attracted to the total balance due from the dealer. The demand could not be bifurcated into separate percentages for tax and penalty for the purpose of admission of the appeal. The expression "balance" was held to refer to the entire outstanding demand.

Conclusion: The demand could not be split up between tax and penalty for computing the pre-deposit. The requirement under section 38(3) applied to the total balance due, and the question was answered against the assessee and in favour of the Revenue.

---