Pre-deposit under VAT law is directory, with waiver or interim protection available on prima facie case and hardship.

The pre-deposit requirement under Section 62(5) of the Punjab Value Added Tax Act, 2005 is directory, so the first appellate authority has implied power to grant full or partial waiver, or interim protection, where the appellant shows a strong prima facie case and hardship. An appeal dismissed solely for non-deposit, without consideration of the merits, cannot stand on that basis alone. The impugned appellate and tribunal orders were set aside, and the matter was remanded to the first appellate authority for fresh consideration of the waiver request in light of that principle.

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Issues: Whether the order dismissing the dealer's appeal for non-deposit of the pre-deposit amount under the value added tax law was liable to be set aside and the matter remanded in view of the later binding decision on the scope of the first appellate authority's power under the pre-deposit provision.

Analysis: The appeal was governed by the earlier decision which had held that the pre-deposit requirement in Section 62(5) of the Punjab Value Added Tax Act, 2005 is directory in nature. The first appellate authority has an implied power to grant interim protection or to waive the pre-deposit condition, in whole or in part, in appropriate cases where a strong prima facie case and hardship are shown. Since the dismissal below had proceeded only on non-deposit and not on the merits, the orders were required to be set aside and the matter sent back to the first appellate authority for fresh consideration in the light of that binding principle.

Conclusion: The dismissal of the appeal for want of pre-deposit could not be sustained and the matter was remanded to the first appellate authority for reconsideration of the request for waiver or interim protection.

Final Conclusion: The dealer obtained relief to the extent that the impugned appellate and tribunal orders were annulled and the dispute was restored for fresh adjudication at the first appellate stage.

Ratio Decidendi: The pre-deposit condition in Section 62(5) of the Punjab Value Added Tax Act, 2005 is directory, and the first appellate authority may grant full or partial waiver or interim protection in deserving cases on showing of a strong prima facie case and hardship.

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