2020 (1) TMI 891

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....er Section 73 of the Value Added Tax Act, 2003 ['VAT Act' for short] are at the instance of appellant-M/s Airolam Ltd. and is directed against the common order dated 17th September 2019 passed by the Gujarat Value Added Tax Tribunal, Ahmedabad in Tax Appeal Nos.618 and 619 of 2019. 2. By order dated 24.10.2019, the appeals are admitted on the following substantial questions of law : "Whether the Gujarat Value Added Tax Tribunal was justified in holding that it cannot travel beyond the direction to pre-deposit 20% of the tax issued by the first appellate authority under sub-section (4) of section 73 of the Gujarat Value Added Tax Act, 2003 on the application made by the appellant for waiver of pre-deposit?" 3. The appe....

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....umstances of the cases, it appears that First Appellate Authority has passed pre-deposit direction in presence of the Consultant, Mr.Fakirbhai Mansuri. This Tribunal cannot travel beyond such direction passed by First Appellate Authority, therefore, in the interest of justice, under the CST Act, we are inclined to pass the direction for Rs. 31,93,716/- towards pre-deposit and since the tax liability of appellant under the GVAT Act is Rs. 25,37,968/-, under the GVAT Act, we pass 20% direction i.e. Rs. 5,00,000/- towards pre-deposit within one month. On payment of aforementioned amount, stay against recovery proceedings shall come into operation till final disposal of appeal. For compliance of order and production of challan, matters are adjo....

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....oof of payment of tax in respect of which the appeal has been preferred, no appeal would be entertained by the Appellate Authority. Proviso to sub-section (4) of Section 73, provides that the Appellate Authority in its discretion, if it thinks fit, for reasons to be recorded in writing, may entertain the appeal (a) without payment of tax with penalty (if any) or, as the case may be, of the penalty, or (b) on proof of payment of such smaller sum as it may consider reasonable, or (c) on the appellant furnishing in the prescribed manner, security for such amount as the Appellate Authority may direct. 8. Thus, the aforesaid analysis of Sub-section (4) of Section 73 stipulates that the Appellate Authority has a disc....