Pre-deposit compliance in VAT appeals led to restoration of second appeals for hearing on merits after directed payment.

Under the Gujarat Value Added Tax Act, 2003, the High Court considered whether second appeals could be dismissed for non-compliance with a pre-deposit direction. The Tribunal had dismissed the appeals solely because the ordered deposit was not made. As the appellant expressed readiness to deposit 20% of the assessed liability, the Court set aside the dismissal and directed payment of the specified amounts within two weeks. After deposit, the First Appellate Authority was to hear the appeals on merits and decide them in accordance with law.

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Issues: Whether the Tribunal was justified in dismissing the second appeals for want of compliance with the pre-deposit order, and whether the dismissal order deserved to be quashed with a direction to deposit the amount and have the appeals heard on merits.

Analysis: The appeal was under Section 78 of the Gujarat Value Added Tax Act, 2003. The Tribunal had dismissed the second appeals solely because the pre-deposit directed earlier had not been complied with. During hearing before the High Court, the appellant expressed readiness to deposit 20% of the total liability fixed as pre-deposit, namely Rs. 8 lakh towards GVAT dues and Rs. 13,000 towards CST dues. In view of that statement, the Court set aside the Tribunal's dismissal order and directed deposit of the stated amounts within two weeks, after which the First Appellate Authority was to hear the appeals on merits and decide them in accordance with law.

Conclusion: The dismissal order for non-compliance with pre-deposit was set aside, and the appellant was permitted to proceed with the appeals on depositing the specified amounts.

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