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2009 (3) TMI 1092 - HC - VAT and Sales TaxPetition filled without pre-deposit - appeals are pending - Act was amended deleting the condition for pre-deposit for entertaining the appeal - notices issued to the Petitioner to make the deposit of the 50% of the total demand - Entertain' - sale of petroleum products- High Speed Diesel & lubricants - entry tax on the scheduled goods - HELD THAT:- It is the settled legal proposition that taxing statute must be construed strictly. Manish Maheshwari v. Asst. CIT and Ors.[2007 (2) TMI 148 - SUPREME COURT]; The purpose of imposing the pre-deposit condition is that right of appeal may not be abused by any recalcitrant party & there may not be any difficulty in enforcing the order appealed against if ultimately it is dismissed. There must be speedy recovery of the amount of tax due to the authority. 'Entertain' means either "to deal with or admit to consideration". 'Entertain' means when it is admitted & the matter is kept under consideration for hearing i.e. for consideration on merit. State of Haryana v. Maruti Udyog Ltd. and Ors.[2000 (9) TMI 946 - SUPREME COURT]. In CIT, Bombay v. Filmistan Limited [1961 (2) TMI 2 - SUPREME COURT], the Supreme Court examined a case where appeal under the provisions of Income Tax Act, 1922 was filed within limitation without meeting requirement of pre-deposit condition. However, tax was paid after the period of limitation prescribed for presenting the appeal. The provisions read that "no appeal shall lie" in view of the proviso to Section 30(1) of the Income Tax Act & it mean that appeal could not be held have been properly filed until tax was paid & any memorandum of appeal could not be presented. In view of the above, law can be summarised that if a condition of pre-deposit is imposed, a party while filing the appeal is bound to meet the requirement of the pre-deposit condition. However, it will depend upon the language of statutory provisions & particularly the words use therein as to whether the memo of appeal can be presented/filed or instituted without meeting the pre-deposit condition. In case "entertaining" the appeal is not permissible, the appeal can be filed, but may not be heard on merit unless the pre-deposit condition is met. The pre-deposit condition is imposed to regulate the procedure of appeal. Therefore, in such an eventuality, where there is no prohibition for filing the memorandum of appeal without meeting "the pre-deposit condition, the appeal can be heard only after meeting it. In the instant case, as the provision of the pre-deposit condition for entertaining the appeal has been deleted prior to entertaining the appeal being a procedural matter, the amendment would apply retrospectively. The instant case is squarely covered by the Judgment of the Hon'ble Supreme Court in Lakshmi Rattan Engineering Works Ltd.[1967 (9) TMI 116 - SUPREME COURT]. The Writ Petition succeeds & is allowed. The impugned notices dated 28th November, 2006 in connection with Second Appeal are quashed.
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