Disputed tax payment cannot be made an automatic pre-condition for revision where the statute gives discretionary power to regulate payment.

Section 54(4) of the Tamil Nadu Value Added Tax Act did not make payment of the entire disputed tax an automatic pre-condition for entertaining a revision. The proviso empowered the Deputy Commissioner to regulate payment before disposal of the revision only through a discretionary direction and on sufficient security being furnished. Because the impugned order relied on the main provision alone and ignored the proviso, the demand for full payment was unsustainable and was set aside. The matter was remitted for fresh consideration of the stay petition on merits.

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Issues: Whether payment of the entire disputed tax could be insisted upon as a pre-condition for entertaining a revision under section 54(4) of the Tamil Nadu Value Added Tax Act, 2006.

Analysis: Section 54(4) provides that tax, fee or other amount shall be paid in accordance with the order under challenge, but its proviso empowers the Deputy Commissioner to issue directions regarding payment before disposal of the revision only in the exercise of discretion and upon sufficient security being furnished. The impugned order relied only on the main provision and ignored the proviso. The statutory scheme therefore does not make payment of the disputed tax an absolute condition for entertaining the revision, and any direction on payment must be made by a lawful exercise of discretion.

Conclusion: The condition insisting on payment of the entire disputed tax before entertaining the revision was unsustainable and was set aside. The matter was remitted for fresh consideration of the stay petition on merits.

Ratio Decidendi: Where a statute contains a proviso conferring discretionary power to regulate payment pending revision, the authority cannot convert payment of the disputed amount into an automatic pre-condition for entertaining the revision.

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