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2019 (3) TMI 1716 - AT - VAT and Sales TaxMaintainability of appeal - non-payment of 25% of total demand towards pre-deposit - demand was raised on ground of certain transactions traced by the Investigation Officer during the search operation carried on by the State Tax Authority - HELD THAT:- The First Appellate Authority while exercising the discretion under Section 73 (4) of the GVAT Act was required to consider the prima facie merits of the submission of appellant as well as legality and validity of the orders passed by the Assessing Authority before deciding the quantum of pre-deposit amount. It appears that in the present cases, the First Appellate Authority has mechanically passed the orders of first appeals without considering prima facie merits of the cases and without considering the legality and validity of the orders of Assessing Authority, determined the quantum of pre-deposit. This Tribunal cannot ignore that the appellant has paid in all ₹ 43,71,922/- as against the tax liability of ₹ 2,54,45,421/- which comes to approximately 16.9% of tax dues raised by the Assessing Authority. It is also a reality that the Assessing Authority failed to appreciate the submission made by the appellant with evidences in three files on 19.03.2018 without making further enquiry or investigation thereupon framed the heavy handed tax liability. Such act of the Assessing Authority is a clear breach of principle of natural justice and law. Even First Appellate Authority without appreciating the facts, law and submission made by the appellant, mechanically passed the orders directing the appellant to pay 25% of total dues towards pre-deposit for all above three appeals, does not seem to be fair and reasonable. Since First Appellate Authority has dismissed the appeals summarily on ground of non-payment of pre-deposit without gone into the merits of the case, we decide to remand these matters back to First Appellate Authority for a fresh hearing on merits with direction to produce a copy of challan of ₹ 10,00,000/- before First Appellate Authority - Appeal allowed by way of remand.
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