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of <h1>High Court emphasizes undue hardship in waiving pre-deposit for VAT appeal, remands for reconsideration.</h1> <h3>M/s Sabharwal Enterprises, Ludhiana Versus The State of Punjab and others</h3> The High Court set aside the orders of the Deputy Excise and Taxation Commissioner (Appeals) and the Tribunal in an appeal under Section 68 of the Punjab ... Validity of dismissal order passed by below authorities - Whether on the facts and circumstances of the case, both the authorities below were justified in dismissing the appeals by holding the condition of pre-deposit of 25% as mandatory for the entertainment of appeal - Held that:- the issue involved in this appeal stands concluded by the decision of this Court in Punjab State Power Corporation Limited v. The State of Punjab and others [2016 (2) TMI 245 - PUNJAB AND HARYANA HIGH COURT]. Therefore, by following this, the orders passed by the Deputy Excise and Taxation Commissioner (Appeals) and the Tribunal are set aside. - Matter remanded back Issues involved:Appeal under Section 68 of the Punjab Value Added Tax Act, 2005 against order of Punjab Value Added Tax Tribunal regarding mandatory pre-deposit for appeal.Analysis:1. The appellant, a dealer engaged in trading non-ferrous metal, filed quarterly and annual returns for the assessment year 2011-12. An additional demand of Rs. 1,14,47,560/- was created through an assessment order dated 16.9.2014. The appellant's appeal against this order was dismissed by the Deputy Excise and Taxation Commissioner (Appeals) for not depositing 25% of the additional demand as required under Section 62(5) of the Act. Subsequently, the Tribunal also upheld the dismissal. The appellant then filed a writ petition which was withdrawn. The present appeal challenges the dismissal based on the mandatory pre-deposit condition.2. The issue in the present appeal was considered in a previous judgment of the High Court in CWP No.26920 of 2013. The Court held that the power to grant interim protection/injunction is embedded in Section 62(5) of the PVAT Act. The first appellate authority has the discretion to waive the condition of pre-deposit in deserving cases to prevent the appeal from being frustrated. This power is not to be exercised routinely but only in cases of undue hardship where the purpose of the appeal would be defeated by the pre-deposit condition. The Court emphasized that a strong prima facie case must be made for granting interim protection/injunction, and the waiver should be granted only in appropriate cases.3. Based on the precedent set in the previous judgment, the High Court set aside the orders of the Deputy Excise and Taxation Commissioner (Appeals) and the Tribunal. The matter was remanded to the Deputy Excise and Taxation Commissioner (Appeals) for reconsideration in light of the principles established in the earlier judgment. The present appeal was disposed of in accordance with the decision in Punjab State Power Corporation Limited's case.This detailed analysis of the judgment highlights the legal issues, the facts of the case, the application of relevant legal provisions, and the precedent set by a previous judgment, providing a comprehensive understanding of the decision.
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