K P S INDUSTRIES Vs. APPELLATE TRIBUNAL SALES

JUDGEMENT

(1.) This writ petition pertains to the question of pre-deposit to be made by the assessee/petitioner under the provisions of Delhi Sales Tax Act and the Central Sales Tax Act relevant to the assessment year 1988-89. The Assessing Authority by his assessment order dated 31.3.1993 assessed the petitioner to Sales Tax to the tune of Rs.20,09,940.60. The Assessing Authority further imposed an interest on the aforesaid amount to the extent of Rs.l6,07,952.40 and penalty of Rs.4,000.00 . Accordingly, the total demand raised against the petitioner towards sales tax relevant to the assessment year 1988-89 was to the tune of Rs.36,21,893.00 .

(2.) Being aggrieved by the aforesaid order of assessment the petitioner preferred an appeal before the Additional Commissioner, Sales Tax, Delhi. The appellate court admitted the aforesaid appeal subject to the petitioner depositing a sum of Rs.4,00,000.00 and Rs.4,000.00 as a condition precedent for the entertainment of the aforesaid appeal. The petitioner, Thereafter filed an appeal before the Appellate Tribunal Sales Tax, Delhi seeking for settings aside of the aforesaid pre-condition of deposit for hearing of the appeal. In the meantime the assessing Authority passed a rectification order with regard to the assessment of the petitioner wherein the demand against the petitioner towards the sales tax for the assessment year 1988-89 was enhanced to Rs.1,46,21,766.00 under the Delhi Sales Tax Act and Rs.7,400.00 under the Central Sales Tax Act. In the rectification order it was mentioned that due to inadvertant calculation and arithmatic mistake the figure given earlier was wrong and assessed the petitioner as above.

(3.) The Appellate Tribunal took up for consideration the appeal filed by the petitioner seeking to set aside the condition of pre-deposit for hearing of the appeal and after hearing the counsel for the partics and on consideration of the record held that the condition imposed for hearing of the appeal filed by the petitioner is just and reasonable and accordingly, he dismissed the appeal. It was however, directed by the Tribunal that the first appellate court would not review its previous order imposing the condition in light of the rectification order. The petitioner was directed to comply with the condition imposed by the first appellate Court by 30.12.1993.