Mandatory pre-deposit of 10% for entertaining appeal under Maharashtra VAT Act is a reasonable condition: HC

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Maharashtra VAT Act

Case Details: United Projects v. State of Maharashtra - [2022] 141 taxmann.com 500 (Bombay)

Judiciary and Counsel Details

    • R.D. Dhanuka, Nitin W. Sambre & Abhay Ahuja, JJ.
    • Vikram Nankani, Sr. Adv. Prithviraj Chaudhari, Roshil Nichani, Mehul Taleva, Dhruv Nyadhish, Sandip Ghaterao, Prathamesh Gargate, N.V. Tapare, Prakash Shah, Jas Sanghavi & Mihir Mehta for the Petitioner.
    • Ashutosh Kumbhakoni, Adv. General Ms Jyoti Chavan, S.B. Lolge, Akshay Shinde, Adv., Ms Neha Bhide & P.P. Kakade, Gov. Pleader for the Respondent.

Facts of the Case

The Maharashtra Tax Laws (Amendment and Validation) Act, 2019 has amended the provisions of the Maharashtra Value Added Tax Act, 2002 to incorporate mandatory pre-deposit for filing appeals against the assessment orders pertaining to all the goods after 16th September, 2016. In this writ petition, the question before the Honorable Bombay High Court was:

Whether condition of 10% pre-deposit for entertaining appeal by appellate authority is onerous, unreasonable and violating Article 14 of Constitution?

High Court Held

The Court observed that the unamended provisions gave discretion to appellate authority to pass order of deposit from 0% to 100% which gave chance or hope for getting waiver. However, later on the State Government had provided a package wherein it prescribed condition of pre-deposit of 10% amount which resulted in staying recovery of 90% as a pre-condition for entertaining an appeal. The amended section prescribed 10% as amount of pre-deposit and stayed recovery of 90% which will not take away vested right, if any.

The Government can enact law stating no appeal shall lie or it may lie on fulfilment of pre-condition and such enactment can’t be said to be violating Article 14 or 19(1)(g) of Constitution. Therefore, it was held that amendment is constitutionally valid and pre-deposit of 10% amount would be a reasonable condition and it could not be considered as onerous.

List of Cases Reviewed

List of Cases Referred to

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