2016 (7) TMI 992 - HC - VAT and Sales Tax

Opportunity granted to pay outstanding balance to preserve appellate rights. Appeal considered without rejection on limitation grounds. Automatic dismissal for non-compliance.

The Court granted the petitioner an opportunity to pay the outstanding balance of Rs. 1,03,000 within 15 days to preserve the right of appellate remedy. ... Waiver of pre-deposit - appeal was rejected for the reason that the pre-deposit amount that the petitioner is required to make i.e., 25% of the disputed tax is not paid within time - Held that:- After hearing the learned Additional Government Pleader on the above submission, considering the peculiar facts and circumstances of the case and taking note of the fact that the appellate remedy is not only effective but an efficacious remedy in which the petitioner will be entitled to canvass all factual issues, this Court is inclined to grant one opportunity to the petitioner. Accordingly, if the petitioner pays the remaining amount of the disputed tax of ₹ 1,03,000/- within a period of 15 days from the date of receipt of a copy of this order, the Appellate Authority may consider the appeal on merits, without rejecting the same on the ground of limitation. Issues:Challenge to rejection of appeal due to non-payment of pre-deposit amount within the specified time frame.Analysis:The petitioner, a registered dealer under TNVAT Act and CST Act, operating a sawmill, challenged the Appellate Authority's order rejecting the appeal for non-payment of the required pre-deposit amount within the stipulated time frame. The appeal should have been filed by 30.09.2015 with a deposit of 25% of the disputed tax, extendable with a delay until 30.10.2015. The petitioner failed to remit the full amount of Rs. 3,15,723 on time, paying only Rs. 2,12,723 belatedly, with a remaining balance of Rs. 1,03,000.The petitioner sought an opportunity to pay the outstanding amount within 15 days to preserve the right of appellate remedy. The Court, after considering the submissions, acknowledged the importance of the appellate remedy as a means to address factual issues effectively. Consequently, the Court granted the petitioner one last chance to pay the remaining Rs. 1,03,000 within 15 days from the order's receipt.If the petitioner fulfills the condition, the Appellate Authority will consider the appeal on its merits without rejection on grounds of limitation. However, failure to comply will result in the automatic dismissal of the writ petition without further recourse. The writ petition was disposed of accordingly, with connected miscellaneous petitions closed, and no costs imposed.