Tha Vrajlal Tribhovandas, Sole Proprietor Hitesh Pravinchandra Shelani Vs. State of Gujarat & Anr. (Gujarat High Court)
In the case THA Vrajlal Tribhovandas vs State of Gujarat & Anr., the Gujarat High Court set aside two orders passed by the Gujarat Value Added Tax Tribunal regarding a pre-deposit requirement. The petitioner, a trader in cotton and agricultural commodities, had challenged an audit assessment that significantly increased their tax dues. The VAT Tribunal, while hearing the revision application, had directed the petitioner to pre-deposit ₹29 lakh. When the petitioner failed to comply, the Tribunal dismissed the application. The petitioner argued before the High Court that no pre-deposit is mandated under Section 75 of the Gujarat VAT Act for admitting a revision application.
The High Court cited its earlier decision in M/s Laxmi Dye Chem vs. State of Gujarat, which clarified that Section 75 of the VAT Act does not provide for a pre-deposit requirement. Therefore, the court quashed the VAT Tribunal’s orders and restored the revision application for fresh consideration. The Tribunal was directed to hear the case on its merits without insisting on any pre-deposit within three months. The High Court did not comment on the merits of the case but focused solely on the procedural aspect concerning the pre-deposit.
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