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of <h1>Writ petition dismissed; Pre-deposit upheld under Punjab VAT Act; Appellate Authority cannot waive.</h1> <h3>M/s Sumit Wool Processord Versus The State of Punjab and others</h3> The writ petition seeking to quash the Value Added Tax Tribunal's order was dismissed by the court. The court upheld the requirement of pre-deposit as per ... Maintainability of appeal - failure to make pre-deposit as per Section 62(5) of the Punjab Value Added Tax Act, 2005 - request for waiver of pre-deposit - HELD THAT:- The petitioner had exercised the right of appeal which is subject to the condition. The mere fact that its account has been declared as Non- Performing Asset would not empower the Appellate Authority to waive off pre-deposit - The petitioner has failed to make out any case for interference under Article 226 of the Constitution of India. Petition dismissed. Issues:1. Quashing of order by Value Added Tax Tribunal for failure to make pre-deposit.2. Challenge to the vires of Section 62(5) of the Punjab Value Added Tax Act, 2005.3. Applicability of Supreme Court judgment in M/s Tecnimont Pvt. Ltd.'s case.4. Appellate Authority's power to grant interim protection against pre-deposit.5. Petitioner's financial situation and appeal for waiver of pre-deposit.6. Authority of Appellate Authority to waive pre-deposit.Issue 1: Quashing of Tribunal's Order:The petitioner filed a writ petition seeking to quash the order of the Value Added Tax Tribunal, Punjab, which upheld the Appellate Authority's decision dismissing the appeal due to failure to make pre-deposit as required by Section 62(5) of the Act. The petitioner requested direction for the Appellate Authority to hear the appeal without insisting on pre-deposit.Issue 2: Challenge to Section 62(5) of the Act:The vires of Section 62(5) of the Act were challenged in previous cases, including Punjab State Power Corporation Limited v. The State of Punjab, where the provision was upheld. It was established that the Appellate Authority could grant interim protection against pre-deposit for hearing the appeal on merits.Issue 3: Supreme Court Judgment in M/s Tecnimont Pvt. Ltd.'s case:The Supreme Court upheld the validity of Section 62(5) but clarified that the Appellate Authority cannot waive the requirement of pre-deposit. The Court emphasized that statutory provisions must be adhered to and cannot be overridden by the Appellate Authority.Issue 4: Appellate Authority's Power to Grant Protection:The Appellate Authority was found not to have the power to waive pre-deposit as per the Supreme Court's decision. The Court cited the principle that the right of appeal is subject to statutory conditions, and financial difficulties do not empower the Authority to waive pre-deposit.Issue 5: Petitioner's Financial Situation and Appeal for Waiver:The petitioner argued financial hardship, including being declared a Non-Performing Asset by the bank. However, the Court noted that mere financial difficulties do not justify waiving the pre-deposit requirement. The petitioner's appeal for setting aside the Tribunal's order was dismissed.Issue 6: Authority of Appellate Authority to Waive Pre-Deposit:The Court concluded that the Appellate Authority lacks the power to waive the pre-deposit condition, as established by the Supreme Court's decision. The petitioner failed to demonstrate grounds for interference under Article 226 of the Constitution of India.In conclusion, the writ petition was dismissed, upholding the Tribunal's decision in light of the legal provisions and precedents cited.
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