Vested right of appeal governs pre-deposit rules, so later amendment could not bar admission of the earlier assessment appeal.

The amended pre-deposit requirement under the proviso to section 79 of the West Bengal Sales Tax Act, 1994 was held not to apply to an appeal arising from assessment proceedings relating to an earlier period. The governing principle stated is that the right of appeal is a vested substantive right that accrues when the lis commences and is ordinarily governed by the law then in force; it cannot be curtailed by a later amendment unless retrospective effect is clearly provided by express words or necessary implication. Because the assessment period predated the amendment, the condition requiring payment of 20 per cent of the disputed tax before admission of the appeal could not be imposed.

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Issues: Whether the amended pre-deposit requirement under proviso 2 to section 79 of the West Bengal Sales Tax Act, 1994 applied to an appeal arising from assessment proceedings relating to an earlier period, and whether rejection of the appeal for non-payment of 20 per cent of the disputed tax was lawful.

Analysis: The amended proviso to section 79, which came into force on 1 April 2002, required payment of admitted tax and 20 per cent of the disputed amount before an appeal could be entertained, subject to discretionary relaxation for recorded reasons. The governing principle applied was that the right of appeal is a vested and substantive right that accrues when the lis commences and is ordinarily governed by the law in force at that time. That right cannot be curtailed by a later amendment unless the statute clearly provides for retrospective effect by express words or necessary implication. Since the assessment proceedings and the underlying return period predated the amendment, the new pre-deposit condition could not be fastened upon the appellant.

Conclusion: The amended pre-deposit condition did not apply retrospectively to the appellant's appeal, and the orders refusing to admit the appeal were not sustainable.

Ratio Decidendi: A vested right of appeal arising at the commencement of proceedings is governed by the law then in force and cannot be taken away or restricted by a subsequent amendment unless retrospective application is clearly intended.

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