Admitted tax as a condition precedent bars appeal where exemption claim was already rejected and unstayed.

An appeal against assessment could be rejected for non-payment of admitted tax where the assessee's exemption claim had already been negatived and remained unstayed at the time of filing and disposal. Once the assessee admitted the sales and the exemption under section 4-AA read with rule 3(66a) stood rejected, the tax on those sales became admitted tax within the first proviso to section 12(1) of the West Bengal Sales Tax Act, 1954. Payment of that admitted tax was a condition precedent to hearing the appeal on merits, and the later dismissal of the special leave petition did not change that position. The rejection of the appeal and the revisional order were therefore upheld.

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Issues: Whether an appeal against assessment could be rejected for non-payment of admitted tax when the assessee's claim of exemption had already been negatived and the rejection remained operative at the time of filing and disposal of the appeal.

Analysis: The assessee had claimed exemption under section 4-AA of the West Bengal Sales Tax Act, 1954 and rule 3(66a) of the Bengal Sales Tax Rules, 1941, but that claim had already been rejected by the competent forums. At the time the appeal against assessment was filed, the adverse order of the Tribunal was in force and had not been stayed or set aside. Once the assessee had admitted the sales and the exemption claim stood rejected, tax payable on those sales became admitted tax for the purpose of the first proviso to section 12(1) of the West Bengal Sales Tax Act, 1954. Payment of such admitted tax was therefore a condition precedent for the appeal to be heard on merits. The later dismissal of the special leave petition did not alter this position, and the absence of payment justified rejection of the appeal.

Conclusion: The rejection of the appeal for non-payment of admitted tax was valid, and the order of the revisional authority also called for no interference.

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