Case Law Details
supM/S. V.V.V. And Sons Edible Oil Ltd. Vs The State of Tamil Nadu & Ors. (Supreme Court of India)
The Hon’ble Supreme Court of India in M/S. V.V.V. And Sons Edible Oil Ltd. v. The State of Tamil Nadu & Ors. [Civil Appeal No. 3964 of 2020 dated December 04, 2020] disposed of the appeal filed against the judgment passed by the Hon’ble Madras High Court, wherein, the Assessee had challenged the constitutional validity of pre-deposit contained under the provisions of the Tamil Nadu Value Added Tax Act, 2006 (TNVAT Act) and held that, since the matter is still at the first appellate stage, the Appellant would, therefore, be obliged to deposit 25% of the demanded sum.
Facts:-
This appeal filed by M/S. V.V.V. And Sons Edible Oil Ltd. (“Assessee/Appellant”) challenges the judgment and order passed by the Hon’ble Madras High Court in W.P. (MD) No. 21856 of 2016 dated February 26, 2020.
The aforesaid writ petition was filed by the Appellant challenging the validity of second proviso to Section 51(1) of the TNVAT Act and second proviso to Section 58(1) of the TNVAT Act. Under Section 51(1) of the TNVAT Act, the Appellant at the first appellate stage is obliged to deposit 25% of the difference in the amount of tax assessed by the assessing authority and the tax admitted by the Appellant whereas under Section 58(1) of the TNVAT Act, the Appellant at the second appellate stage is required to deposit the sum ordered by the appellate authority. The constitutional validity of these provisions were under challenge in the aforesaid writ petition and the challenge having been negatived, this appeal has been preferred.
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