Pre-deposit requirement under VAT law cannot be recalculated on balance tax due when 25% of disputed amount is already paid.

The appellate authority could not insist on a fresh 25% deposit under section 62(5) of the Punjab Value Added Tax Act, 2005 by calculating the requirement on the balance tax due when the petitioner had already deposited more than 25% of the disputed amount. That approach was inconsistent with the statutory requirement, so dismissal of the appeal for non-deposit was not justified. The dismissal order was liable to be quashed, and the matter was to be reconsidered afresh by the appellate authority on merits in accordance with law.

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Issues: Whether the appellate authority was justified in dismissing the appeal for non-deposit of 25% of the tax under section 62(5) of the Punjab Value Added Tax Act, 2005 by computing the deposit requirement on the balance amount of tax due.

Analysis: The petitioner had already deposited more than 25% of the disputed amount. On the admitted position, the appellate authority's approach of insisting upon 25% deposit on the remaining balance tax due was inconsistent with the statutory requirement. The dismissal of the appeal on that basis could not be sustained.

Conclusion: The dismissal order was not justified and was liable to be quashed. The matter was required to be decided afresh by the appellate authority on merits in accordance with law.

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