Vested right of appeal controls application of later pre-deposit conditions in pending tax proceedings.

A later pre-deposit amendment requiring payment of 20% of disputed tax before admission of appeal was held inapplicable where the assessment proceeding had already commenced on issuance of notice before the amendment took effect. The right of appeal was treated as a vested substantive right that accrues when the lis begins, and could not be curtailed by a subsequent procedural condition absent express retrospective language or necessary implication. On those facts, rejection of the appeal for non-deposit was unjustified, the order was set aside, and the appeal was directed to be admitted and heard on merits.

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Issues: Whether the amended proviso to section 79(1) of the West Bengal Sales Tax Act, 1994 requiring deposit of 20% of the disputed tax before admission of appeal applied to an assessment proceeding that had commenced before the amendment but culminated after its commencement.

Analysis: The right of appeal was treated as a vested and substantive right that accrues when the lis commences. Since the assessment proceeding had begun with the issuance of notice long before the amendment dated 1 April 2002, the later procedural requirement for pre-deposit could not be applied to take away that existing right in the absence of express retrospective operation or necessary implication. The earlier Supreme Court authority on commencement of lis and vesting of appellate rights was treated as governing the controversy on the facts.

Conclusion: The amended pre-deposit requirement did not apply to the petitioner, and rejection of the appeal for non-deposit of 20% of the disputed tax was unjustified. The impugned order was set aside and the appeal was directed to be admitted and decided on merits.

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