Megha Assam Pvt. Ltd And Anr. Vs State of Assam And 4 Ors. (Gauhati High Court)
The Gauhati High Court addressed the appeal of Megha Assam Pvt. Ltd. and another petitioner, who challenged their tax assessment under the Assam Value Added Tax Act for the years 2006-2009. The petitioners had initially failed to deposit the required 25% of the disputed tax as mandated under Section 79(5) of the Assam VAT Act, leading to the dismissal of their appeals in June 2016. However, they later deposited 32% of the disputed amount and sought a fresh hearing from the appellate authority, which was declined. The petitioners then approached the High Court, citing judgments from the Supreme Court that allowed leniency in cases of genuine hardship, where pre-deposit requirements might be burdensome. The court acknowledged the petitioners’ compliance with the pre-deposit requirement and agreed that they were entitled to a hearing.
The court referred to the principle of equity from earlier Supreme Court judgments, emphasizing that while appellate authorities cannot bypass statutory pre-deposit requirements, courts have the authority to grant relief in cases of genuine hardship. As the petitioners had complied with the pre-deposit requirement by the time of the hearing, the court found it equitable to grant them a fresh hearing. The impugned orders were set aside, and the appellate authority was directed to hear the matter afresh on a scheduled date. The court made it clear that failure to appear would result in the revival of the previous orders, but it did not address the merits of the tax dispute itself.
