M/S Bhushan Power And Steel LTD. vs. U.T. Chandigarh And Another

Held

The Court did not decide on the merits of the appeal or the waiver of the pre-deposit condition. Instead, the appellant, in view of the judgment of the Hon'ble Supreme Court in M/s Tecnimont Pvt. Ltd. (Formerly known as Tecnimont ICB Pvt. Ltd.) vs. State of Punjab, 2019 VIL 31 SC, prayed for permission to withdraw the present appeal. The Court, acceding to this request, dismissed the appeal as withdrawn. The operative direction was to grant liberty to the appellant to avail its remedies in accordance with law. No specific issue was expressly left undecided, as the appeal was withdrawn by the appellant.

Facts

The appellant, M/s Bhushan Power & Steel Ltd., a steel pipe manufacturer registered under the Punjab Value Added Tax Act, 2005, challenged an additional demand raised by the Assessing Officer for reversal of Input Tax Credit, including interest and penalty. The First Appellate Authority dismissed the appellant's appeal for failing to meet the pre-deposit condition under Section 62(5) of the VAT Act. The Value Added Tax Tribunal upheld this decision. The appellant then filed the present appeal before the High Court, seeking a waiver of the pre-deposit condition due to financial hardship and the merits of the case. During the hearing, the appellant sought permission to withdraw the appeal, citing a Supreme Court judgment.

Key Issues

1. Whether the High Court should grant a waiver of the pre-deposit condition under Section 62(5) of the VAT Act, considering the appellant's alleged financial crunch and the merits of the case? The appellant argued that the pre-deposit condition should be waived due to their financial difficulties and the strong merits of their case. They relied on the principle that substantial justice should prevail and that the financial hardship should be considered. The revenue/state did not present any arguments as the appellant withdrew the appeal before arguments were heard on the merits. 2. Whether the appellant is entitled to avail its remedies in accordance with law, following the Supreme Court's judgment in M/s Tecnimont Pvt. Ltd. vs. State of Punjab? The appellant, in light of the Supreme Court's decision in M/s Tecnimont Pvt. Ltd., prayed for permission to withdraw the present appeal to pursue other legal avenues.