Amended pre-deposit conditions apply to later second appeals, even when returns were filed before the amendment.

The amended pre-deposit requirements under section 22(3) of the Karnataka Sales Tax Act, 1957 and section 14(3) of the Karnataka Tax on Entry of Goods Act, 1979 were held to apply to second appeals filed after the amendment, even though the returns had been filed earlier. The Court treated the right of appeal as vested, but distinguished that right from the statutory conditions attached to a later appellate remedy. It relied on prior High Court authority recognising that the Legislature may alter appellate conditions, and held that the amendment validly required pre-deposit before the second appeal could be entertained. The issue was answered in favour of the Revenue.

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Issues: Whether the amended pre-deposit requirement under section 22(3) of the Karnataka Sales Tax Act, 1957 and section 14(3) of the Karnataka Tax on Entry of Goods Act, 1979 applied to second appeals filed after the amendment, where the returns had been filed before the amendment.

Analysis: The right of appeal was treated as a vested right, but the Court distinguished between the commencement of lis for the purpose of the original assessment proceedings and the statutory conditions governing a later second appeal. The Court relied on earlier binding decisions of the same High Court holding that the Legislature may impose or alter conditions governing the appellate remedy, and that an amended deposit requirement in a second appeal does not take away the right of appeal itself. The Court also noted that the assessees' appeals were second appeals filed after the amendment came into force, and that the amended provisions only required compliance with the statutory pre-deposit before the appeal could be entertained.

Conclusion: The amended pre-deposit provisions applied to the second appeals and were validly enforceable; the issue was answered in favour of the Revenue and against the assessees.

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