Court sets aside orders, restores petitioner's appeal for decision on merits, waives pre-deposit requirement.

The Court set aside the orders of the appellate authority and the Tribunal, restoring the petitioner's appeal for a decision on merits. The pre-deposit requirement was waived until the appeal was decided by the appellate authority.

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Issues:
Assessment of input tax credit disallowed by the Assessing Officer, requirement of pre-deposit for appeal, availability of adverse material for the petitioner, interference in writ jurisdiction, Tribunal's decision on pre-deposit, restoration of petitioner's appeal.

Assessment of Input Tax Credit Disallowed:
The petitioner was assessed by the Assessing Officer for the year 2011-2012, where input tax credit for purchases from registered dealers was disallowed for nine dealers. This led to a tax demand of &8377; 10.85 crores, with interest and penalty, totaling &8377; 21.97 crores. The petitioner appealed this order, but the first appellate authority required a 20% pre-deposit and a bank guarantee, which the petitioner failed to provide, resulting in the dismissal of the appeal.

Requirement of Pre-Deposit for Appeal:
The petitioner approached the Value Added Tax Tribunal against the appellate authority's decision. The Tribunal ordered the petitioner to deposit 20% of the tax demand by a specified date but relieved the petitioner from providing a bank guarantee for the remaining amount. The petitioner then approached the High Court challenging the pre-deposit requirement.

Availability of Adverse Material for the Petitioner:
The petitioner argued that the disallowance of input tax credit was based on non-conciliation, but the authorities did not provide the necessary materials for the petitioner to refute the discrepancies. The Tribunal acknowledged the absence of such data but still required the pre-deposit. The Court noted the lack of material available to the petitioner and questioned the need for the pre-deposit.

Interference in Writ Jurisdiction:
The Assistant Government Pleader opposed the petition, stating that the Court should not interfere at the pre-deposit stage. However, the Court considered the petitioner's contentions regarding the unavailability of adverse material and the necessity of the pre-deposit.

Tribunal's Decision on Pre-Deposit:
The Tribunal acknowledged the absence of the report and directed the petitioner to make a 20% pre-deposit, exempting them from providing a bank guarantee. The Court raised concerns about the use of unavailable materials for substantial additions and questioned the need for the pre-deposit if transactions appeared genuine.

Restoration of Petitioner's Appeal:
Considering the circumstances, the Court set aside the orders of the appellate authority and the Tribunal, restoring the petitioner's appeal before the first appellate authority for a decision on merits. The Court waived the pre-deposit requirement until the appeal was decided by the appellate authority.

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