Anand Rathi Commodities International Private Limited Vs State of Haryana and others (Punjab And Haryana High Court)
In Anand Rathi Commodities International Private Limited Vs State of Haryana and Others, the Punjab and Haryana High Court addressed the issue of statutory pre-deposit under Section 33(5) of the Haryana Value Added Tax (HVAT) Act, 2003. The petitioners challenged the appellate authorities’ dismissal of their appeals due to non-furnishing of bank guarantees or adequate security, citing financial incapacity. The core question was whether appellate authorities had the power to waive the pre-deposit requirement. The High Court referred to prior rulings, including the Supreme Court’s judgment in M/s Tecnimont Private Limited, which allows for relief in cases of severe financial hardship. While the appellate authorities could not waive the pre-condition, the High Court exercised its writ jurisdiction to direct that the appeals be heard without insisting on pre-deposit, given the petitioners’ poor financial status. The court set aside the orders of the appellate authorities and instructed the Commissioner (Appeals) to decide the cases on merits without requiring the pre-deposit, ensuring fair access to justice. The petitions were allowed, benefiting companies facing financial difficulties in meeting tax-related security requirements.
FULL TEXT OF THE JUDGMENT/ORDER OF PUNJAB AND HARYANA HIGH COURT
