Pre-deposit condition under VAT appeal modified, with remand to first appellate authority on compliance with security terms.

Pre-deposit for admission of a second appeal under the Gujarat Value Added Tax Act was modified after the appellant undertook to deposit a reduced sum and furnish immovable property security. The Court treated these conditions as sufficient to give the appellant a fair opportunity before the first appellate authority and directed remand of the matter for disposal of the appeal on compliance with the stated terms. The additional direction that no further action be taken pending disposal was treated as an ancillary protective measure supporting the remand.

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Issues: Whether the pre-deposit condition imposed for admission of the second appeal under the Gujarat Value Added Tax Act, 2003 required modification and whether the matter should be remanded to the first appellate authority for decision on the appeal.

Analysis: The appeal was not decided on merits. The Court considered the appellant's undertaking to deposit a reduced amount of Rs. 5 lakhs as pre-deposit and to furnish security by way of immovable property. In view of those conditions, the Court found it to afford the appellant a fair opportunity before the first appellate authority. The direction for further security and the statement that no further action would be taken pending disposal of the appeal were treated as protective measures ancillary to the remand.

Conclusion: The pre-deposit condition was modified, the matter was remanded to the first appellate authority for disposal of the appeal after compliance with the stated conditions, and the appeal was disposed of accordingly.

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