Statutory pre-deposit requirement under VAT law upheld, with non-compliance rendering the appeal not maintainable.

Non-compliance with the statutory pre-deposit requirement for filing a VAT appeal rendered the appeal not maintainable. The appellate forums dismissed the challenge because the assessee had not deposited 25% of the additional demand, and the High Court found that condition reasonable and justified. It held that no illegality or perversity was shown in the Tribunal's order and that no question of law arose for interference. The dismissal of the appeal was therefore upheld.

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Issues: Whether the appeal could be entertained despite non-deposit of 25% of the additional demand as required for hearing of the appeal under the applicable VAT law.

Analysis: The assessment had resulted in demand under both the Central Sales Tax Act and the Punjab Value Added Tax Act as applicable to Chandigarh. The appellate forums found that the assessee did not comply with the statutory requirement of pre-deposit of 25% of the additional demand and, on that ground, dismissed the appeal. The High Court found the pre-deposit condition to be reasonable and justified and held that no illegality or perversity was shown in the Tribunal's order. The Court further observed that no question of law arose for interference in the appeal.

Conclusion: The appeal was not maintainable without compliance with the pre-deposit requirement and the dismissal of the appeal was upheld against the assessee.

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