In Brief
This case addresses the constitutional validity of Section 62(5) of the Punjab Value Added Tax Act, 2005, which requires appellants to deposit 25% of the disputed tax demand before their appeals can be entertained. The Supreme Court held that the state has constitutional authority to impose such pre-deposit conditions on appeals as a reasonable regulation of the statutory right of appeal. The Court rejected arguments that this requirement violated Article 14 equality rights. However, the Court also held that appellate authorities lack implied power to waive the pre-deposit requirement based on hardship claims; doing so would nullify the statutory mandate. Relief in genuine hardship cases must be sought through writ petitions challenging arbitrary assessments, not through the appellate authority's discretion.
The lawyer headnote and full judgment text are available to registered users.