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Entire Amount of Pre-Deposit will be Relaxed, Only If Mandatory Deposit is Deposited before Tribunal within 30 days: Chhattisgarh HC [Read Order]

Chhattisgarh HC - deposit- Taxscan

The High Court of Chhattisgarh while dismissing the petition held that if the appellant deposits mandatory deposit before the Tribunal within a period of 30 days from passing of this order, then he will be entitled to get the benefit of further directions issued by the Single Judge relating to the relaxation of the entire amount of pre-deposit i.e 20%.

The appellant establishment, M/s Shivshankar Solvent Extraction Private Limited is registered for the VAT with the state. Suo-Moto proceedings were initiated by Commissioner of Commercial Tax, Raipur under Section 49(3) of the Chhattisgarh Value Added Tax (VAT). F-form issued by the dealers mentioned in the schedule were unregistered, which is liable to be rejected. Notices were issued proposing tax to be levied @ 4% on Rs.8,96,01,955/-. Appellant-Assessee submitted a reply to the notice, Commissioner upon considering reply passed order assessing the liability of tax of Rs.35,84,078/- upon the appellant.

The order was challenged before Chhattisgarh Commercial Tax Tribunal, which was dismissed on the ground of for non-enclosure of the receipt of a deposit of 20% of the demand as envisaged under Section 48(4)(ii) of the VAT Act.

The Appellant, aggrieved by the order filed this appeal, mainly, raising the ground that due to mishap of fire in the appellant’s factory, the appellant has suffered a huge loss and even loss of business, so appellant is not in a position to make pre-deposit in terms of Section 48(4)(ii) of VAT Act.

The Single Judge said that the entire amount of pre-deposit i.e. 20% of the amount is to be relaxed and the appeal filed before the Tribunal to be considered for hearing on its merit only if the appellant deposits mandatory deposit before the Tribunal within a period of 30 days.

The division bench headed by Chief Justice PR Ramachandra Menon upheld the decision of the single bench and held that if the appellant deposits mandatory deposit before the Tribunal within a period of 30 days from passing of this order, then he will be entitled to get the benefit of further directions issued by Single Judge in of the impugned order which relates to the relaxation of the entire amount of pre-deposit i.e 20%.

To Read the full text of the Order CLICK HERE
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