Pre-deposit under Punjab VAT law is directory, with implied power to waive it on prima facie case or hardship.

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 and waive pre-deposit wholly or partly where a strong prima facie case or undue hardship is shown. Applying that governing precedent, dismissal of a statutory appeal solely for non-deposit of 25% could not stand without such consideration, and the orders of the appellate authority and Tribunal were set aside. The matter was remanded to the first appellate authority for fresh decision in accordance with that precedent.

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Issues: Whether the dismissal of the statutory appeal for non-deposit of 25% under Section 62(5) of the Punjab Value Added Tax Act, 2005 was sustainable and whether the matter should be remanded to the first appellate authority for consideration in accordance with the governing precedent.

Analysis: The dispute was governed by the earlier decision holding that the power to grant interim protection is embedded in Section 62(5) of the Punjab Value Added Tax Act, 2005 and that the pre-deposit requirement is directory in nature. It was further held that the first appellate authority may, in deserving cases, waive the pre-deposit condition wholly or partly where a strong prima facie case or undue hardship is shown. Applying that binding view, the orders dismissing the appeal for non-deposit could not stand without such consideration.

Conclusion: The orders of the first appellate authority and the Tribunal were set aside and the matter was remanded to the first appellate authority for fresh consideration in terms of the earlier precedent.

Ratio Decidendi: 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 and to waive pre-deposit wholly or partly in appropriate cases.

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