Appeal maintainability under sales tax law turns on timely payment of admitted tax, while proof may be filed later.

Under section 31(1) of the Tamil Nadu General Sales Tax Act, the admitted tax must actually be paid within the appeal period or within the limited condonable extension; proof of payment may be filed later when the appeal is first taken up. Payment beyond that statutory time limit does not satisfy the filing and renders the appeal barred by limitation, and earlier contrary views were disapproved. In two matters involving revised assessment orders, the payments had to be tested against the corrected liability, so they could not be treated as delayed payment of admitted tax on the facts found. The general batch was therefore rejected as time-barred, while the remand in those two cases was sustained.

---

---

Issues: (i) Whether, under section 31(1) of the Tamil Nadu General Sales Tax Act, 1959, the admitted tax must be paid within the period prescribed for filing the appeal, or within the further condonable period, for the appeal to be validly entertained; and whether the proof of such payment can be produced later at the stage of first hearing. (ii) Whether, in the cases where a revised assessment order corrected the tax liability, the payments made before and after the revision could be treated as delayed payment of admitted tax so as to bar the appeals.

Issue (i): Whether, under section 31(1) of the Tamil Nadu General Sales Tax Act, 1959, the admitted tax must be paid within the period prescribed for filing the appeal, or within the further condonable period, for the appeal to be validly entertained; and whether the proof of such payment can be produced later at the stage of first hearing.

Analysis: The provision was construed as self-contained. The first proviso governs limitation for presenting the appeal and permits condonation only up to the outer limit fixed by the statute. The second proviso, requiring the appeal to be accompanied by proof of payment of the admitted tax, was read in the light of the Supreme Court decisions distinguishing between cases where tax was paid within time but proof was produced later and cases where payment itself was made beyond the permissible period. The Court held that the decisive requirement is that the admitted tax must actually be paid within the original period for filing the appeal, or within the extended period that can validly be condoned under the first proviso. Production of proof may be later, when the appeal is first taken up, but the payment itself cannot be beyond the statutory time limit. The Court further held that decisions taking a contrary view did not correctly state the law and were inconsistent with the binding Supreme Court authorities.

Conclusion: The appeal is not maintainable if the admitted tax is paid beyond the prescribed period and beyond the condonable extension; the appeal must then be rejected as barred by limitation. The earlier contrary view was overruled.

Issue (ii): Whether, in the cases where a revised assessment order corrected the tax liability, the payments made before and after the revision could be treated as delayed payment of admitted tax so as to bar the appeals.

Analysis: In the two special cases, the original assessment contained mistakes in credit and quantification, and a revised order was later passed correcting the liability. The Court held that the payments made by the assessees had to be assessed in the light of the revised determination of liability, and the earlier assumption of delay by the appellate authority was incorrect. On the corrected facts, the payments could not be treated as belated payment of admitted tax for the purpose of section 31(1).

Conclusion: The remand in those two matters was sustained, and the Revenue's challenge failed in those cases.

Final Conclusion: The Court upheld the Revenue's contention on the interpretation of section 31(1) in the general batch of cases, restored the orders rejecting the appeals as time-barred, but maintained the different result in the two cases involving revised assessment orders.

Ratio Decidendi: Under section 31(1), the admitted tax must actually be paid within the statutory period for appeal or within the limited condonable extension, though proof of payment may be produced later when the appeal is first considered.

---