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2019 (9) TMI 788 - SC - VAT and Sales TaxCompliance with the pre-deposit - Section 62(5) of the Punjab Value Added Tax Act, 2005 - power of State to enact Section 62(5) of the PVAT Act - inherent powers to grant interim protection against imposition of such a condition for hearing of appeals on merits - Whether the State is empowered to enact Section 62(5) of the PVAT Act? - HELD THAT:- In The Anant Mills Co. Ltd. v. State of Gujarat and Others [1975 (1) TMI 62 - SUPREME COURT], a Bench of four Judges of this Court considered inter alia, challenge to the validity of Section 406 of the Bombay Provincial Municipal Corporations Act, 1949 as amended by Gujarat Act No.5 of 1970. As per the relevant provision, no appeal against the ratable value or tax would be entertained unless the amount claimed was deposited with the Commissioner. The proviso to said Section however empowered the Judge considering the appeal to relieve the appellant from the rigour of pre-deposit if in the opinion of the Judge it would cause undue hardship to the appellant. Whether the condition of 25% pre-deposit for hearing first appeal is onerous, harsh, unreasonable and, therefore, violative of Article 14 of the Constitution of India? - HELD THAT:- The decision of the Constitution Bench of this Court in Seth Nand Lal [ 1980 (5) TMI 101 - SUPREME COURT ] did consider whether the requirement of pre-deposit would cause undue hardship. However considering that the liability in question and consequential requirement of pre-deposit was a meagre rate of the annual land-tax payable, the fetter imposed on the right of appeal/revision, even in the absence of a provision conferring the discretion on the appellant/revisional authority to relax or waive the condition was not found to be onerous or unreasonable. Thus, Section 62(5) of the PVAT Act is legal and valid and the condition of 25% of pre-deposit not to be onerous, harsh, unreasonable and violative of Article 14 of the Constitution of India. Whether the first appellate authority in its right to hear appeal has inherent powers to grant interim protection against imposition of such a condition for hearing of appeals on merits? - HELD THAT:- If the inherent power the existence of which is specifically acknowledged by provisions such as Section 151 of the CPC and Section 482 of the Cr.P.C. is to be read with the limitation that exercise of such power cannot be undertaken for doing that which is specifically prohibited, same limitation must be read into the scope and width of implied power of an appellate authority under a statute. Appeal dismissed.
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