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Supreme Court of India 2019-07-10 allowed

M/S. S.E. GRAPHITES PRIVATE LIMITED vs STATE OF TELANGANA

Bench: 2 — A.M. Khanwilkar, Dinesh Maheshwari

In Brief

The Supreme Court considered multiple appeals concerning the pre-condition of depositing 12.5% of disputed tax before an appeal can be entertained under the Andhra Pradesh GST/VAT Acts. The Court held that the deposit must be made before the appeal is taken up for consideration for the first time (for admission on merits or condonation of delay), not necessarily at the time of filing the appeal. The Court overruled the High Court's earlier principle that deposit must occur within the statutory limitation period for filing appeals. Where deposits were made before the first hearing, appeals cannot be rejected on institutional grounds. The Court set aside judgments of the High Court and Appellate Authorities that mechanically rejected appeals without considering substantive issues or claims for tax credit adjustments, and directed fresh consideration of such cases.

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Tax Law Indirect Taxation Appellate Procedure Sales Tax Statutory Interpretation Condition Precedent Tax Compliance

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