Pre-deposit requirement relaxed where substantial deposit was already made and the long-pending appeal was restored for merits hearing.

Where the statutory pre-deposit had been substantially met and the dispute had remained pending for an inordinately long period, the HC held that strict insistence on further deposit was not appropriate. The amount already deposited was directed to be adjusted towards the pre-deposit requirement, and the appellate authority was required to hear the appeal on merits expeditiously. The dismissal for non-compliance with the pre-deposit condition was set aside, and the appeal was restored for merits adjudication.

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Issues: Whether the dismissal of the assessee's appeal for non-compliance with the pre-deposit requirement under Section 62(5) of the Punjab VAT Act, 2005 was justified, and whether the appeal deserved to be restored for adjudication on merits.

Analysis: The appeal had remained pending for several years and the assessee had already deposited an amount towards the tax due. The Court took note of the peculiar facts, including the repeated remands and the continuing pendency of the assessment proceedings, and held that the strict insistence on further deposit in the given circumstances would not be appropriate. The Court therefore directed that the amount already deposited be adjusted towards the statutory pre-deposit and that the appellate authority decide the appeal on merits expeditiously.

Conclusion: The dismissal of the appeal for want of 25% pre-deposit was set aside, and the assessee was granted relief by restoration of the appeal for decision on merits.

Final Conclusion: The writ petition succeeded, the impugned order was annulled, and the appellate authority was required to proceed with the appeal after accounting for the deposit already made.

Ratio Decidendi: Where the statutory pre-deposit has been substantially met and the dispute has remained pending for an inordinately long period, the appellate forum may be directed to accept the existing deposit, adjust it toward the required pre-deposit, and decide the appeal on merits.

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