Case Law Details
A S L Enterprises Ltd. Vs Senior Joint Commissioner (Calcutta High Court)
Whether proviso to Section 84(1) of the West Bengal VAT Act, 2003 which provides for mandatory pre-deposit of 15% is ultra vires?
1. Insisting the dealer to produce the proof of payment of 15% of the disputed tax in terms of the second proviso to Section 84(1) does not infringe/ abrogate the vested right of appeal under Section 84(1) of the Act and such proviso does not amount to compulsory extraction of tax as it is a procedural law, prescribing a procedure for the purpose of entertaining an appeal.
2. The second proviso to Section 84(1) of the Act does not infringe Article 14 of the Constitution as the substantive law namely, Section 84(1) of the Act does not provide for any categories of dealers or categories of assessments except two categories namely, provisional assessments and other assessments and the two categories in the dealers as casual dealer or any other dealer. Therefore, all categories of dealers have been brought under a single umbrella and they have been given right to file appeal against either a provisional assessment or other assessment. Thus, the attempt of the appellant to draw an artificial classification among the dealers is impermissible.
3. The right of appeal conferred under Section 84(1) of the Act has not been affected on account of the condition imposed under the second proviso to Section 84(1) which provides for the procedure to be adhered for entertainment of an appeal by an aggrieved dealer. The procedural law does not in any manner, impinge upon the vested right of the dealer conferred under Section 84(1) of the Act.
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