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2005 (12) TMI 528 - HC - VAT and Sales TaxMandatory pre-deposit - right of appeal - time of initiation of assessment proceedings - whether it is the date of assessment order or the date on which return is filed or required to be filed as per the statute or the date of issuance of pre-assessment notice? - HELD THAT:- It is not disputed that the amended provisions of the Act are not given retrospective effect as and from an enterior date. In other words, the amended provisions are prospective. According to the appellants, the above restrictions placed on the appeals will not relate to the assessments and returns filed by the assessees prior to 14-6 -1999. It is their submission that the amendment introducing condition of pre-deposit being substantive in nature cannot have retrospective effect and that their right of appeal is governed by the provisions on the dates they filed their monthly returns, which were prior to the Act 14 of 1999, and as on the said date, there was no mandatory condition for pre-deposit of disputed tax before the appeal was lodged. We hold that the crucial date on which the right of the assessees to prefer an appeal u/s 31 or Sec.36 of the Act is the date on which the returns are filed under the Act. In all these appeals, returns were filed long prior to the date when the provisions of Sec.31 of the Act was amended by virtue of Act 14 of 1999. Further more, it is not disputed by the parties that the aforesaid amendments to the Act have not been given retrospective effect as and from an anterior date and those amendments are prospective. Therefore, the appeals are liable to be entertained without insisting of pre-deposit of 25% of the disputed tax as per the amended provisions of the Act. In the result, the order of the learned single Judge is set aside. The writ appeals preferred by the Revenue, are dismissed and the appeals filed by the assessees are allowed. The appellate authority is directed to entertain the appeals filed by the assessees/appellants without insisting for pre-deposit of 25% of the disputed tax and dispose of the same in accordance with law.
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