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2014 (4) TMI 840 - HC - VAT and Sales TaxWaiver of Pre-deposit – Condition for waiver - Undue hardship - Under the GST Act and under Central Sales Tax Act – Disposal of stay - Held that:- On merely establishing a prima facie case, interim order of protection should not be passed - But if on a cursory glance it appears that the demand raised has no leg to stand, it would be undesirable to require the assessee to pay full or substantive part of the demand - Petitions for stay should not be disposed of in a routine matter unmindful of the consequence flowing from the order requiring the assessee to deposit full or part of the demand - Merely because this Court has indicated the principles that does not give a license to the forum/authority to pass an order which cannot be sustained on the touchstone of fairness, legality and public interest - Where denial of interim relief may lead to public mischief, grave irreparable private injury or shake a citizens’ faith in the impartiality of public administration, interim relief can be given. While dealing with the application twin requirements of considerations i.e. consideration of undue hardship aspect and imposition of conditions to safeguard the interest of Revenue have to be kept in view - There are two important expressions in Section 35(f) - One is undue hardship - This is a matter within the special knowledge of the applicant for waiver and has to be established by him - A mere assertion about undue hardship would not be sufficient - It was noted by this Court in S. Vasudeva Vs State of Karnataka and Ors. [1993 (3) TMI 350 - SUPREME COURT OF INDIA] that under Indian conditions expression “Undue hardship” is normally related to economic hardship - “Undue” which means something which is not merited by the conduct of the claimant, or is very much disproportionate to it - Undue hardship is caused when the hardship is not warranted by the circumstances – Relying upon Mehsana District Cooperative Milk P.U. Ltd. vs. Union of Indina [2003 (3) TMI 113 - SUPREME COURT OF INDIA] - The conditions as to predeposit in appeal can be waived mainly on the ground of undue hardship/ financial hardships - Moreover, when the petitioners have neither pleaded any undue hardship and / or financial hardship it cannot be said that the learned Tribunal has committed any error and / or illegality in directing the petitioner original appellant to deposit a sum of Rs. 20 crores as predeposit - Petitions fail and are dismissed – Decided against assessee.
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