1966 (8) TMI 53 - HC - VAT and Sales Tax

Summary

Issues:
1. Jurisdiction of Sales Tax Appellate Tribunal to demand payment of tax as a condition for entertaining appeals.
2. Applicability of Andhra Pradesh General Sales Tax Act, 1957, regarding proof of tax payment.
3. Interpretation of the crucial date for determining the law applicable to the appeal.
4. Impact of retrospective operation of procedural conditions on the right of appeal.

Detailed Analysis:
1. The petitioner filed two writ petitions under Article 226 challenging the Sales Tax Appellate Tribunal's demand for proof of tax payment as a prerequisite for entertaining appeals. The petitioner argued that the Tribunal's notices were illegal and without jurisdiction, contending that the Madras General Sales Tax Act in force at the crucial date did not mandate tax payment for appeal registration. The Andhra Pradesh General Sales Tax Act, 1957, introduced the requirement for proof of tax payment under section 21(6), not applicable to appeals initiated under the previous law.

2. The petitioner's counsel relied on the Supreme Court's decision in Hoosein Kasam Dada (India) Ltd. v. The State of Madhya Pradesh, emphasizing that the crucial date for determining the applicable law to the appeal is the date of initiation of proceedings. The Court held that the amendment imposing tax payment as a condition precedent to appeal cannot be applied retrospectively unless expressly stated, as it interferes with the substantive right of appeal. The new provision under the Andhra Pradesh General Sales Tax Act, 1957, imposing tax payment, was deemed inapplicable to appeals initiated under the old law.

3. Applying the Supreme Court's ruling to the case, the High Court concluded that the Sales Tax Appellate Tribunal exceeded its jurisdiction by demanding tax payment before entertaining the petitioner's appeals. The Court held that the Tribunal's actions were beyond its authority under the law applicable at the crucial date. Consequently, the writ petitions were allowed, and the Court issued the writs as requested, without granting costs due to the belated contention raised by the petitioner.

4. In summary, the judgment clarified the jurisdictional limits of the Sales Tax Appellate Tribunal regarding tax payment requirements for appeal registration, emphasizing the significance of the law in force at the crucial date of appeal initiation. The decision underscored the need for procedural conditions to align with substantive rights, ensuring fair access to the appellate process without undue impediments.