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2016 (6) TMI 656 - HC - VAT and Sales TaxWaiver of pre-deposit - GVAT - pendency of BIFR proceedings - tribunal insisted that the appellant deposits 25% of the tax demand for each year within three months of the date of the order, failing which, the appeals would be dismissed. - Held that:- if any proceedings are pending before the BIFR or the appellate authority, that by itself not mean that the predeposit requirement under subsection (4) of section 73 of the VAT Act would be obliterated. Nevertheless financial condition of the company being one of the prime considerations, the pendency of such proceedings and contents thereof may be relevant. On the basis of such proceedings or independently also, it is always open for the company to establish before the appellate authority that condition of predeposit is required to be waived. Reverting to the facts of the present case, we may recall at one stage the Tribunal had itself remanded the proceedings before the appellate authority for fresh decision without insisting on any predeposit. It was only when the appellant failed to appear before the appellate authority despite sufficient chances that the appellate authority dismissed the appeals for default. In such facts, in order to bring a degree of seriousness on part of the appellant, it was undoubtedly necessary to impose a condition of predeposit. However, directing deposit of 25% of the due tax demand was excessive. In facts of the case, we therefore, direct the appellant to deposit a total of ₹ 50 lakhs with the State authority within a period of four months - part relief granted to appellant.
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