In Brief
VVF (India) Limited, an oleo-chemicals manufacturer, made protest payments before a VAT assessment order. When appealing the assessment under Maharashtra's VAT Act, the authorities rejected its appeal, contending it had not deposited the mandatory 10% of disputed tax as required by Section 26(6A). The Supreme Court held that protest payments made before the assessment order must be considered towards satisfying the pre-deposit requirement. Following strict interpretation of taxing statutes, since the law requires deposit of 10% "of tax disputed"—not 10% of "tax in arrears"—prior protest payments can be credited. The appeal was allowed and remitted to the appellate authority for verification and restoration.
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