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2020 (1) TMI 891 - HC - VAT and Sales TaxNon-compliance with the pre-deposit - Whether the Gujarat VAT Tribunal was justified in holding that it cannot travel beyond the direction to pre-deposit 20% of the tax issued by the first appellate authority under sub-section (4) of section 73 of the Gujarat Value Added Tax Act, 2003 on the application made by the appellant for waiver of pre-deposit? HELD THAT:- On perusal of sub-section (4) of Section 73 of the GVAT Act, it is clear that before filing the appeal against the order of assessment or before the Tribunal challenging the order of appeal, unless the appeal is accompanied by the satisfactory proof of payment of tax in respect of which the appeal has been preferred, no appeal would be entertained by the Appellate Authority. Proviso to sub-section (4) of Section 73, provides that the Appellate Authority in its discretion, if it thinks fit, for reasons to be recorded in writing, may entertain the appeal, subject to conditions - the aforesaid analysis of Sub-section (4) of Section 73 stipulates that the Appellate Authority has a discretion either to insist for pre-deposit or to direct the appellant to pay lessor amount or smaller amount and the tax payable as per the order under Appeal and/or to furnish security in lieu of payment of tax as the Appellate Authority may thinks fit on the basis of the facts of the case. It is obvious that the Tribunal could not have stated that it cannot travel beyond the direction passed by the First Appellate Authority with regard to the condition of pre-deposit for entertaining the appeal as per the provision Sub-section (4) of Section 73 of the GVACT Act. Therefore, the question is answered in affirmative in favour of the appellant assessee. The Tribunal is now required to again consider the aspect whether any case is made out by the appellant herein for the purpose of waiver of the pre-deposit amount or lessor amount towards pre-deposit or not - appeal disposed off.
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