Pre-deposit and statutory appeal: limitation could not defeat a pre-GST appeal where the appeal was otherwise maintainable on merits.

Where a statutory appeal concerns a pre-GST assessment and the assessee has made the required pre-deposit, the appeal should not be rejected merely on limitation if the record shows confusion about whether the matter was treated under the Tamil Nadu Value Added Tax Act, 2006 or the Tamil Nadu Goods and Services Tax Act, 2017. The pre-deposit already made was treated as satisfying the statutory requirement, and the appellate authority was expected to examine the appeal on merits after giving a reasonable opportunity. Refusal to receive the appeal solely on limitation was therefore not sustainable.

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Issues: Whether the appellate authority was justified in refusing to receive the statutory appeal on the ground of limitation despite the pre-deposit made by the assessee and the apparent confusion as to whether the proceedings arose under the Tamil Nadu Value Added Tax Act, 2006 or the Tamil Nadu Goods and Services Tax Act, 2017.

Analysis: The assessment related to the pre-GST period, and the record indicated a credible basis for the assessee's contention that the proceedings were treated inconsistently under the two enactments. The amount already paid amounted to about 25% of the disputed tax and satisfied the pre-deposit requirement under Section 51 of the Tamil Nadu Value Added Tax Act, 2006. In these circumstances, the refusal to receive the appeal solely on limitation was not warranted, and the appeal ought to have been examined on merits after affording a reasonable opportunity.

Conclusion: The appellate authority was required to receive the statutory appeal and dispose of it on merits without going into limitation, and the refusal to receive the appeal was not sustainable.

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