In Brief
Tecnimont Pvt. Ltd. challenged section 62(5) of the Punjab Value Added Tax Act, 2005, which requires a 25% pre-deposit of disputed tax before filing an appeal. The High Court upheld the provision as valid and reasonable. The Supreme Court affirmed that Court's decision, holding that the inherent powers of courts cannot override statutory provisions unless expressly prohibited. Appeals by the taxpayers were dismissed, while the State's appeals were allowed. The 25% pre-deposit requirement was held valid and not unreasonably onerous.
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