Mandatory pre-deposit under VAT appeal law cannot be waived despite financial hardship, and writ interference was refused.

The statutory first appeal under Section 62(5) of the Punjab Value Added Tax Act, 2005 was conditional on prior deposit of 25% of the additional demand, penalty and interest. Applying Tecnimont, the HC noted that the Appellate Authority had no power to waive this mandatory pre-deposit or invoke any implied or inherent discretion to defeat an express statutory bar. Financial hardship, including an NPA declaration, did not justify relaxation of the condition, and no illegality was shown in dismissing the appeal for non-deposit. Supervisory interference under Article 226 was therefore unwarranted.

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Issues: Whether the Appellate Authority or Tribunal could waive the statutory pre-deposit required for entertaining the appeal under Section 62(5) of the Punjab Value Added Tax Act, 2005, and whether interference under Article 226 of the Constitution of India was warranted.

Analysis: The statutory scheme made entertainment of the first appeal conditional upon prior minimum payment of 25% of the additional demand, penalty and interest. The binding Supreme Court decision in Tecnimont held that the Appellate Authority has no power to waive this mandatory pre-deposit and cannot exercise any implied or inherent authority to do what the statute expressly prohibits. Financial hardship or declaration of the account as a non-performing asset did not create a legal basis to bypass the statutory condition. As the writ petition did not challenge the assessment order itself and no illegality in the dismissal of the appeal on the ground of non-deposit was shown, no ground for supervisory interference was made out.

Conclusion: The pre-deposit requirement was mandatory, waiver could not be granted, and the writ court declined to interfere.

Ratio Decidendi: A statutory appellate authority cannot waive or override an expressly mandated pre-deposit condition, and the existence of financial hardship does not authorize judicial or appellate relaxation contrary to the statute.

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