Mandatory pre-deposit for tax appeals upheld where non-compliance barred entertainment of the appeal.

Pre-deposit under the Punjab Value Added Tax Act was treated as a mandatory condition precedent for entertaining the appeal. The appellate authority and Tribunal had directed deposit of 25% of the additional demand before hearing, and the appellant did not comply. The High Court found that the requirement was statutory, the direction to deposit 25% was reasonable and justified, and no illegality or perversity was shown in the Tribunal's order. As no question of law arose for interference, the appeal could not be entertained without compliance with the pre-deposit condition and the dismissal was sustained.

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Issues: Whether the appeal could be entertained without compliance with the statutory pre-deposit requirement under Section 62(5) of the Punjab Value Added Tax Act, 2005.

Analysis: The appeal was filed under Section 68 of the Punjab Value Added Tax Act, 2005. The appellate authority and the Tribunal required deposit of 25% of the additional demand as a condition for hearing the appeal. The appellant failed to comply with that direction. The Court found that the statutory requirement of pre-deposit was mandatory for entertainment of the appeal and that the direction to deposit 25% of the additional demand was reasonable and justified. No illegality or perversity was shown in the Tribunal's order, and no question of law arose for interference.

Conclusion: The appeal could not be entertained without compliance with the pre-deposit condition, and the dismissal of the appeal was sustained.

Ratio Decidendi: Where the statute makes pre-deposit a condition precedent for entertaining a tax appeal, failure to comply justifies dismissal of the appeal and does not warrant interference in second appeal absent illegality or perversity.

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