Supreme Court stays section 62(5) of Punjab VAT Act, 2005-No need to pre-deposit 25% for filing appeal

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..... Supreme Court stays section 62(5) of Punjab VAT Act, 2005-No need to pre-deposit 25% for filing appeal
By: - AMIT BAJAJ ADVOCATE
Value Added Tax - VAT and CST
Dated:- 14-2-2014

In a very important case namely Dishnet Wireless Ltd vs The Commercial Tax Officer SLP No. 37727/2013 and in WP(c) No. 69 of 2014 namely Amrit Banaspati Limited vs State of Punjab Supreme Court has granted s .....

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..... tay on the operation and implementation of section 62(5) of Punjab VAT Act, 2005. Section 62(5) of Punjab VAT Act, 2005 requires pre-deposit of 25 percent of additional demand before hearing any appeal under the Punjab VAT Act, 2005. This is a very harsh provision as it restricts the statutory right of appeal. Section 62(5) of the Punjab VAT Act, 2005 is produced herebelow: " No appleal shall b .....

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..... e entertained, unless such appeal is accompanied by satisfactory proof of the prior minimum payment of twenty-five per cent of the total amount of additional demand, penalty and interest, if any. Explanation:- For the purposes of this sub-section "additional demand" means any tax imposed as a result of any order passed under any of the provisions of this Act or the rules made thereunder or under .....

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..... the Central Sales Tax Act, 1956 (Act No. 74 of 1956)" Supreme Court in the abovenoted case has made the following order: "W.P. (C) 69 of 2014. Issue notice, returnable on 7th March, 2014. In the meantime, there shall be stay of operation andimplementation of sub-Section (5) of Section 62 of Punjab VAT Act, 2005." After the above stay order of Supreme Court now there is no need to deposit 25 p .....

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..... ercent of additional demand before filing any appeal under Punjab VAT Act, 2005 and CST Act, 1956
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