TaxTMI 
TaxTMI 
2026 (2) TMI 226
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....ry pre-deposit in terms of Section 33(5) of Haryana Value Added Tax Act, 2003 (for short - 'HVAT Act'). 2. Learned counsel for petitioner submits that petitioner is a Company duly registered under Companies Act, 1956 besides being registered under Central Sales Tax Act, 1956 and Haryana Value Added Tax Act, 2003. Petitioner is a Developer within the meaning of Rule 49 of Haryana Value Added Tax Rules, 2003 (for short - 'HVAT Rules') and has been engaged in the development of Group Housing colony located at Sector 105, Gurugram, Haryana. It is further submitted that Composition scheme was notified by State of Haryana through Excise and Taxation Department on 12.08.2014. As per clause 4 of this notification, an assessee registered as Devel....
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....ing a direction to respondent No. 4 to entertain said appeal and decide it on merits without insisting on pre-deposit. 5. Learned counsel for petitioner vehemently argues that petitioner faces severe financial hardship and is unable to deposit the amount in question. Reference is made to certificate dated 22.08.2025 issued by one Mahesh Kumar and Company (Chartered Accountants) to submit that petitioner's financial health is weak. It is further submitted that no revenue has been received by petitioner since the past nearly seven years. Moreover, petitioner has a very good case on merits, therefore, it should not be put to peril and left remediless only on the ground that it is unable to deposit the requisite surety. It is, thus, prayed t....
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....rties and have perused the file with their able assistance. 9. Petitioner admittedly a Developer seeks a direction to respondent No. 4 i.e. Haryana VAT Tax Tribunal to entertain its appeal challenging order dated 08.04.2024, without insisting upon statutory pre-deposit in terms of Section 33(5) of HVAT Act. At this juncture, it is relevant to refer to Section 33(5) of HVAT Act which reads as under:- "(5) No appeal preferred by an assessee to an appellate authority shall be entertained, unless it is filed within sixty days from the date of order appealed against. The appellate authority shall ensure before entertaining the appeal that the appellant has paid the amount of tax admitted to be due and interest thereon, and a bank gua....
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....sh, unreasonable or violative of Article 14 of Constitution of India. Section 62(5) of Punjab VAT Act reads as under:- "(5) No appeal shall be entertained, unless such appeal is accompanied by satisfactory proof of the prior minimum payment of twenty-five per cent of the total amount of additional demand created, penalty and interest, if any." 13. In respect to question No. (c), Hon'ble the Supreme Court held that appellate Authority did not have any discretion to grant relief against requirement of pre-deposit. In the instant case, petitioner pleads financial hardship to submit that this Court in exercise of jurisdiction under Article 226 of Constitution of India should direct waiver of amount of pre-deposit. 14. At this sta....
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....28,09,52,572 2,12,13,798 Moreover, it has come to the knowledge of the undersigned that the company also holds significant stakes in the projects of M/s ATS Infrastructure Limited which is a renowned Developer in the field of Real Estate. In view of the above, it is evident that the financial status of the company is very sound." 16. In the given factual matrix, it is not possible to conclusively hold in present proceedings that financial status of the petitioner is not sound to the extent that it is even unable to furnish requisite security in terms of Section 33(5) of Act 2003. Reliance by learned counsel for petitioner on judgments of Hon'ble the Supreme Court in Indu Nissan Oxo Chemicals Ind. Ltd. (supra) is of n....