Pre deposit Amount paid u/s 77(4) of OVAT Act for First Appeal cannot be treated against the Second Appeal: Orissa HC [Read Order]
First Appeal – Second Appeal – Orissa HC – Orissa High Court – OVAT Act News – OVAT Act Updates – TAXSCAN
First Appeal – Second Appeal – Orissa HC – Orissa High Court – OVAT Act News – OVAT Act Updates – TAXSCAN
The Orissa High Court has held that the pre-deposit amount paid under section 77(4) of the Orissa Value Added Tax (OVAT ) Act for the first appeal cannot be treated against the second appeal.
The petitioner, M/s Swastik Agency prayed that the order passed by the second appellate authority should be set aside and the petitioner should be given the opportunity of hearing, as he has already deposited the pre-deposit amount.
Mr. Sunil Mishra, Standing Counsel appearing for the department vehemently raised objection contending that the petitioner filed the first appeal causing a delay of 361 days and also it had not deposited the mandatory amount of 20% of the demanded tax, as required under Section 77(4) of the OVAT Act.
It was further contended that after disposal of the first appeal vide order dated 19.09.2018, the pre-deposit amount was paid in March, 2021 after a long lapse of two years. Now the petitioner cannot state that it has paid the pre-deposit amount of 20% of the demanded tax, as required under the law. Therefore, the appeal suffered from a 361-day delay.
The contention raised by counsel for the petitioner that the petitioner has deposited pre-deposit has not been taken into consideration while passing the order by the second appellate authority. The counsel for the petitioner stated that the petitioner has deposited the pre-deposit of 20% of the demanded tax for consideration in the second appeal, but not the first appellate authority.
A division bench of Acting Chief Justice Dr B R Sarangi and Justice Murahari Sri Raman viewed that as per Section 77(4), OVAT Act, the requirement of pre-deposit is for entertainment of the first appeal, but not the second appeal. Therefore, the Sales Tax Tribunal is correct in passing the order dated 02.07.2021.
The petitioner stated that the pre-deposit had been made towards the entertainment of the first appeal. It was evident that the petitioner had never asked to quash the order of the first appellate authority. The Court upheld the order and dismissed the writ petition.
To Read the full text of the Order CLICK HERE
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