2005 (7) TMI 609

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..... ned Special Government Pleader for the respondent. 3. The grievance of the appellant is that since the factory was on strike they could not furnish the declaration forms which ultimately resulted in the assessing authority passing the impugned order of assessment by imposing tax liability to the tune of Rs.7,88,440/-. Since the grievance of the appellant appears to be genuine the learned Judge has also set aside the order of assessment, but however, imposed a condition that the appellant should deposit a sum of Rs.3,00,000/- (Rupees three lakhs only) towards the TNGST assessment apart from paying the entire tax component in respect of the CST assessment. In such circumstances, we only modify that part of the order of the learned Judge dire .....

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..... 5. Thus, 25% of the disputed amount has to be deposited by the assessee as a pre-condition of the entertainment of his appeal. There is no provision for waiver or stay by the appellate authority of the pre-deposit of this 25% of the difference of the tax assessed by the assessing authority and the tax admitted even in genuine and appropriate cases. In our opinion absence of such provision permitting waiver or stay of the pre-deposit by the appellate authority in genuine and appropriate cases is often causing great hardship to the dealers. 6. In almost all the Tax Statutes wherever there is a provision of pre-deposit of some amount subject to which alone the appeal can be entertained there is almost invariably a provision permitting waiver .....

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..... provision for waiver or stay of the pre-deposit amount even in genuine and appropriate cases. 8. Hence we recommend to the State Government to issue an ordinance forthwith amending Section 31 of the Tamil Nadu General Sales Tax Act and making a provision permitting waiver or stay by the appellate authority (in its discretion) of the pre-deposit amount in appropriate and genuine cases so that the assessees may not face hardship, and the alternative remedy of appeal may not become illusory. 9. It may also be pointed out that the second appellate remedy under Section 36 of the Act can only be availed of if the entire tax amount is prepaid vide second proviso (a) to Section 36 of the Act. Hence we recommend that there should be a similar amen .....

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