Pre-deposit under Punjab VAT must be computed on additional demand after amendment; Tribunal's direction was upheld.

The amended Punjab VAT pre-deposit provision requires 25 per cent of the additional demand, being the difference between tax already deposited and the demand raised, together with penalty and interest if applicable. The 2011 amendment removed earlier ambiguity by clarifying that the statutory minimum is computed with reference to the additional demand, and the Tribunal's direction requiring that deposit was consistent with the amended scheme. The challenge to that direction therefore failed, while time was granted only for compliance with the pre-deposit requirement.

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Issues: Whether, for an appeal under section 62(5) of the Punjab Value Added Tax Act, 2005, the pre-deposit of 25 per cent is to be computed with reference to the additional demand and whether the Tribunal's direction requiring such deposit was sustainable.

Analysis: The statutory amendment introduced by the Punjab Value Added Tax (Third Amendment) Act, 2011 clarified that the minimum pre-deposit is 25 per cent of the amount of additional demand, namely the difference between the tax already deposited and the demand raised by the assessing authority, together with penalty and interest, if any. The earlier ambiguity in the provision stood removed by the amendment, and the Tribunal's direction requiring deposit of 25 per cent of the additional demand was consistent with the amended statutory scheme.

Conclusion: The challenge to the Tribunal's order failed, and the requirement to deposit 25 per cent of the additional demand was upheld.

Final Conclusion: The appeals were rejected on merits, while further time was granted only for compliance with the pre-deposit direction.

Ratio Decidendi: Where the governing provision has been clarified by amendment, the statutory pre-deposit requirement must be applied in accordance with the amended text, namely with reference to the additional demand.

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