Admitted tax payment within appeal time limit is essential for a valid appeal under sales tax law.

Payment of admitted tax within the maximum period permitted for filing the appeal was treated as a condition for maintaining the appeal under the second proviso to section 31 of the Tamil Nadu General Sales Tax Act read with section 9(2) of the Central Sales Tax Act, 1956. The Court held that this requirement could not be separated from the appellate filing timeline, following the binding Full Bench view, although proof of payment could be filed later. As the admitted tax was paid after expiry of the extended filing period, the appeal was ineffective and the impugned order could not stand.

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Issues: Whether payment of admitted tax after the expiry of the maximum period for filing the appeal, including the extended period, renders the appeal ineffective under the second proviso to section 31 of the Tamil Nadu General Sales Tax Act read with section 9(2) of the Central Sales Tax Act, 1956.

Analysis: The Tribunal had treated the time-limit for payment of admitted tax as distinct from the statutory time-limit for filing the appeal. The Court held that this view was contrary to the binding Full Bench decision which required the admitted tax to be paid within the maximum period allowed for filing the appeal, even if proof of payment could be produced later. Since the admitted tax in the present case was paid several days after the extended filing period had expired, the appeal could not be treated as validly maintained.

Conclusion: The appeal was ineffective for non-compliance with the statutory time requirement, and the impugned order was unsustainable.

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