Mandatory pre-deposit under tax law cannot be lightly waived where prior readiness to comply was represented.

A statutory pre-deposit requirement under the Chhattisgarh Value Added Tax Act, 2005 was treated as a mandatory condition not to be waived lightly. The court noted that waiver or relaxation of pre-deposit depends on a strong prima facie case, and that a party may be bound by an earlier representation that arrangements had been made to comply. An order granting time to make the deposit and preserving the right to be heard on merits upon compliance was therefore upheld, and the challenge to interference with that order failed.

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Issues: Whether the writ appeal challenging the order granting time to make the mandatory pre-deposit under Section 48(4)(ii) of the Chhattisgarh Value Added Tax Act, 2005 warranted interference.

Analysis: The appellant had earlier sought time to make good the pre-deposit requirement and had represented that arrangements had been made to comply with the statutory condition. In the present appeal, the Court found that the appellant could not take inconsistent stands in separate proceedings after having taken that position earlier. The Court also noted that the cited precedents did not assist the appellant on the facts, since the question of waiver or relaxation of pre-deposit is not to be exercised routinely and depends on the existence of a strong prima facie case. The impugned order had only granted time to comply and protected the appellant's right to be heard on merits upon deposit.

Conclusion: Interference was declined and the challenge to the order granting time for mandatory deposit failed.

Ratio Decidendi: A statutory condition of pre-deposit under a taxing enactment cannot be lightly waived, and a party who has earlier represented readiness to comply may be bound by that position in subsequent proceedings.

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