Pre-deposit verification governs second appeal; claimed prior payment must be checked before balance deposit and further appellate hearing

At the stage of entertaining the second appeal, the High Court confined itself to the pre-deposit issue and did not examine the reassessment merits. It directed the petitioner to produce proof of the claimed prior payment before the Tribunal. If that payment, or any part of it, was established, the Tribunal was to verify it and require deposit of the balance so that the total pre-deposit reached the demanded amount. The appellate forum was then to consider the second appeal in accordance with law, leaving the tax dispute itself undecided.

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Issues: Whether, at the stage of entertaining the second appeal, the petitioner could be directed to make pre-deposit without first verifying the payment already claimed to have been made, and whether the matter should be sent back for such verification and further proceedings.

Analysis: The dispute concerned only the pre-deposit requirement and not the merits of the reassessment. The record indicated that the total demand of tax and interest was about Rs. 75 lakhs, while the petitioner asserted prior payment of Rs. 49,66,903/-. In view of the rival positions, the Court directed the petitioner to produce proof of payment before the Tribunal. If such payment or any part thereof was established, the Tribunal was to verify it and ensure deposit of the balance so that the total pre-deposit reached Rs. 75 lakhs. The Court also clarified that the appellate forum should thereafter consider the second appeal in accordance with law.

Conclusion: The petitioner was granted partial relief by way of verification of the claimed payment and remand to the Tribunal for consequential action on pre-deposit, without any adjudication on the merits of the tax dispute.

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