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2015 (1) TMI 765 - HC - VAT and Sales TaxOrder of Pre-deposit complied or not - Whether the Deputy Commissioner of Commercial Tax needs to be directed to hear the appeal on merits without requiring the petitioner to make any further deposit towards the tax dues – Held that:- By an order dated 5th July, 2011, the assets of the petitioner including goods, factory, land, motor cars, lands of Directors, etc. came to be attached - at the time of attachment, the value of the properties was around ₹ 53 crores, out of which the stock was valued at ₹ 48 crores - However, now according to the respondent, the value of the stock is estimated at ₹ 2.15 crores only - The appellate authority/Deputy Commissioner has directed the petitioner to pre-deposit ₹ 7,13,27,525/- for hearing the appeals on merits - instead of deciding the matter on merits by examining as to whether the petitioner had made out a prima facie case or as to whether any of the circumstances envisaged under the proviso to section 73 of the Act are attracted, the Tribunal proceeded to ask the Department to dispose of the stock attached by it with a view to recover the amount towards the pre-deposit – section 73(4) of the GVAT Act, it is apparent that the same prohibits entertainment of any appeal by an appellate authority unless the same is accompanied by satisfactory proof of payment of tax in respect of which the appeal has been preferred - However, the proviso thereto permits the appellate authority if it thinks fit for reasons to be recorded in writing to entertain the appeal without payment of tax with penalty or without penalty, on payment of proof of a smaller sum as it may consider reasonable or on the appellant furnishing in the prescribed manner, security for such amount as the appellate authority may direct - Thus, any of the aforesaid three courses of action are available to the appellate authority, if it so deems fit. The court has examined the order of assessment passed by the AO and is of the view that the petitioner does have a prima facie case in its favour - insofar as the payment of pre-deposit as directed by the appellate authority is concerned, the court is of the view that as per the averments made in the affidavit-inreply filed by the respondent that at the time when the properties were attached vide order dated 5th July, 2011, the same were worth ₹ 53 crores, and as such the interest of the department is sufficiently secured – thus, the appeals filed by the petitioner before the appellate authority are required to be heard on merits without payment of any amount by way of pre-deposit, in view of the fact that sufficient security is available with the department by way of attachment of the properties of the petitioner – thus, the order of the Tribunal is set aside and the matter is restored to the DCCT for adjudication – Decided in favour of applicant assessee.
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