Pre-deposit under Punjab VAT law is directory, and waiver may be granted where deposit would defeat the appeal.

The pre-deposit requirement under Section 62(5) of the Punjab Value Added Tax Act, 2005 is directory, and the first appellate authority has implied power to grant interim protection or waive the deposit wholly or partly in appropriate cases. Such relief is exceptional and depends on a strong prima facie case where insistence on deposit would frustrate the appeal. As the appeal had been dismissed solely for non-deposit without adjudication on merits, the dismissal orders were set aside and the matter remanded to the first appellate authority for fresh consideration of waiver and interim relief in accordance with those principles.

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Issues: Whether the dismissal of the appeal for non-deposit of 25% of the demand under Section 62(5) of the Punjab Value Added Tax Act, 2005 was sustainable and whether the matter was liable to be remanded to the first appellate authority for consideration of waiver of pre-deposit.

Analysis: The governing principle had already been settled by the Court in earlier proceedings that Section 62(5) is directory in nature and that the first appellate authority has an implied power to grant interim protection or waive the pre-deposit condition, wholly or partially, in appropriate cases. Such relief is not routine and is to be considered only where a strong prima facie case is shown and insistence on pre-deposit would frustrate the appeal. The impugned appellate and tribunal orders had dismissed the appeal on the ground of non-deposit without adjudicating the controversy on merits.

Conclusion: The orders dismissing the appeal for non-deposit were set aside and the matter was remanded to the first appellate authority for fresh consideration in accordance with the governing principles on pre-deposit and interim protection.

Ratio Decidendi: The pre-deposit requirement under Section 62(5) of the Punjab Value Added Tax Act, 2005 is directory and may be waived wholly or partly by the first appellate authority in deserving cases where insistence on deposit would defeat the appeal.

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