Parity in connected VAT appeals can justify fresh consideration of pre-deposit requirements and remand for merits hearing.

Pari materia treatment of connected GST/VAT appeals may justify setting aside a pre-deposit direction where the assessment and appellate orders are materially similar. The Gujarat High Court noted that, as in a connected matter involving a sister concern, the Tribunal's requirement of substantial pre-deposit before hearing the first appeals on merits should be reconsidered on the same footing. The impugned order was set aside and the first appellate authority was directed to decide the pre-deposit requirement afresh in accordance with law, followed by hearing on merits. Costs were directed to be deposited in each case.

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Issues: Whether the Tribunal's order directing substantial pre-deposit under the Gujarat Value Added Tax Act, 2003 was liable to be quashed and the matter remanded for fresh consideration of the pre-deposit requirement.

Analysis: The appeals arose from the Tribunal's direction requiring pre-deposit as a condition for proceeding with the first appeals on merits. The assessee relied on an earlier order passed in a connected matter involving the sister concern, where the Tribunal had remanded the proceedings for fresh hearing and determination of pre-deposit under section 73 of the Gujarat Value Added Tax Act, 2003. As the assessment and appellate orders in both matters were found to be materially similar, the same course was held to be warranted. The impugned order was therefore set aside and the first appellate authority was directed to hear the matters afresh and determine pre-deposit in accordance with law, with costs of Rs. 6000/- to be deposited in each case.

Conclusion: The challenge to the Tribunal's pre-deposit direction succeeded, and the matters were remanded for fresh hearing and determination of pre-deposit.

Final Conclusion: The appeals were disposed of by restoring the disputes to the first appellate authority for reconsideration on the question of pre-deposit and subsequent hearing on merits.

Ratio Decidendi: Where connected matters rest on substantially identical facts, parity in appellate treatment may justify setting aside a pre-deposit order and remanding the proceedings for fresh determination in accordance with law.

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