Pre-deposit waiver under VAT law need not rest on financial hardship; reduction without detailed reasons was upheld.

The Gujarat HC noted that under section 73(3) of the Gujarat Value Added Tax Act, 2003, waiver or reduction of pre-deposit does not depend on proof of financial hardship. Because the revenue had not objected before the Tribunal to the course adopted, the Tribunal's reduction of the pre-deposit and continuation of stay without detailed reasons was not legally infirm. On that basis, the order did not give rise to a substantial question of law and the challenge was rejected.

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Issues: Whether the Tribunal was justified in reducing the pre-deposit and bank guarantee requirement without recording reasons or finding financial hardship, and whether such order gave rise to a substantial question of law.

Analysis: The appeal challenged the Tribunal's order under section 78 of the Gujarat Value Added Tax Act, 2003, which had reduced the pre-deposit and directed continuation of stay. The Court noted that the revenue did not object before the Tribunal to the course adopted, and that section 73(3) of the Act does not require financial hardship to be established as a condition for waiver or reduction of pre-deposit. In that view, the absence of detailed reasons for reduction did not render the order legally infirm, nor did it generate a substantial question of law.

Conclusion: The Tribunal's order suffered from no legal infirmity and the challenge was rejected.

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