Judgement in writ petitions challenging section 62(5) of PVAT Act reserved by High Court

Earlier I had shared with my readers that I had filed writ petitions along with other similar petitions challenging the Constitutional validity of section 62(5) of Punjab VAT Act, 2005 before Punjab & Haryana High Court.

The arguments in all such writ petitions have been finally concluded and the judgement has been reserved by the Hon’ble Punjab and Haryana High Court on 09.09.2015.

It is worth mentioning here that section 62(5) mandates compulsory pre-deposit of 25% of additional demand before an appeal against any order is entertained on merits. A similar writ petition chalenging section 62(5) is also pending before Supreme Court. However, the Hon’ble P&H High Court has now reserved its order on this issue and final judgement on the same can be expected anytime in near future.

It is also worth mentioning here that before reserving the judgement the High Court has also made the following interim order on 07.09.2015 which is as follows:

“In the meantime, the appellate authorities shall not dismiss the appeals on the ground of non deposit of additional demand.”

Thus untill the judgement on section 62(5) comes the appeals pending before appellate authorities, wherein no 25% has been deposited and writ petition challenging vires of section 62(5) has been filed before Punjab & Haryana High Court, cannot be dismissed for want of pre-deposit of 25%.

(Author – Amit Bajaj Advocate, Bajaj & Bajaj Advocates, 128, Sangam complex, Milap chowk, Jalandhar City (Punjab), Email: amitbajajadvocate@hotmail.com , M +919815243335)

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0 responses to “Punjab VAT- HC stays dismissal of appeals for non deposit of 25% of tax demand”

  1. ca jyotsna says:

    the case is of SINGLA BUILDERS & PROMOTERS LIMITED vs state of punjab cwp 22437 of 2013

  2. B.C.GURU SWAMY says:

    Hon’ble High Court interim order for not rejecting the appeal for non payment of 25% pre deposit amount is itself is half victory as the said provision has become 144 section to harass the prompt dealers and creating fictitious demand .
    Let us hope Apex court will put an end to this menace.

  3. Harish says:

    You have not mentioned name of the petitioners for reference sake.

  4. haribabu koduri says:

    Hope High Court would rule that pre-deposit is not constitutionally valid. That would be a great relief for all tax payers, since the departmental officers are resorting to illegal and huge demands, knowing well that assesses are required to deposit 25% (varies from State to State) which will fulfill their targets. In some of the cases this provision is also encouraging corruption, which is well known to trade and industry. Let all of us pray the god for relief.

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