Pre-deposit exemption under Assam VAT must be considered by reasoned order before revision is refused

Under Section 82(2A) of the Assam Value Added Tax Act, 2003, the 25% pre-deposit is the normal condition for entertaining a revision petition, but the proviso allows the Commissioner to admit the matter on part payment or without payment on recorded reasons and security to relieve hardship. Because that proviso is an exception to the main rule, any application seeking exemption from pre-deposit must be received, considered, and decided by a speaking order. A communication insisting on deposit without first determining the exemption request was therefore unsustainable and was set aside.

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Issues: Whether, under Section 82(2A) of the Assam Value Added Tax Act, 2003, the Commissioner was required to consider and decide an application seeking exemption from the statutory pre-deposit of 25% of the demanded amount before refusing to entertain the revision petition.

Analysis: The statutory scheme makes deposit of 25% of the disputed amount the normal rule for entertaining a revision application. The proviso creates an exception by empowering the Commissioner, for reasons to be recorded in writing and subject to security, to admit the application with part payment or without payment in order to mitigate hardship. Since the proviso is an exception to the main requirement, an application invoking it necessarily has to be received, considered, and decided by a speaking order; otherwise the requirement of recording reasons would be rendered ineffective.

Conclusion: The Commissioner was bound to consider the petitioner's exemption application on merits and pass a reasoned order before insisting on the 25% pre-deposit. The communication insisting on deposit without such consideration was not sustainable and was set aside.

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