Financial hardship can justify relaxation of statutory pre-deposit conditions and allow an appeal on a reduced deposit.

Where genuine financial hardship is shown, the High Court may in writ jurisdiction grant relief against a rigid statutory pre-deposit condition under the Punjab Value Added Tax Act, 2005. The petitioner's debt burden, repayment obligations, and undisputed financial position justified modification of the 25% deposit requirement. The appeal was therefore permitted to proceed on a reduced pre-deposit of 10% of the total demand, and the appellate authority was directed to entertain it on that basis.

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Issues: Whether the petitioner, on showing financial hardship, could seek modification of the statutory pre-deposit condition for entertaining the first appeal under the Punjab Value Added Tax Act, 2005.

Analysis: The Court noted that the petitioner was under substantial debt, was repaying loan instalments, and the asserted financial position was not disputed by the respondents. It further observed that insistence on the full 25% pre-deposit would adversely affect the petitioner's ability to continue business and service its liabilities. In these circumstances, the Court exercised writ jurisdiction to grant relief against the rigid operation of the pre-deposit requirement and permitted the appeal to be pursued on the basis of a reduced deposit of 10% of the total demand.

Conclusion: The pre-deposit condition was modified and the appellate authority was directed to entertain the appeal on deposit of 10% of the total demand; the relief was granted in favour of the assessee.

Ratio Decidendi: Where genuine financial hardship is established, the High Court may, in exercise of its writ jurisdiction, grant relief against a rigid statutory pre-deposit condition and permit the appeal to be heard on a reduced deposit.

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