Case Note & Summary
The petitioner, M/s. Mohit Ispat Ltd., challenged an order dated 4th August 2017 passed by the Tribunal under the Goa Tax on Entry of Goods, 2000, which dismissed its appeal for non-compliance with a direction to deposit security amount or furnish bank guarantee. The Tribunal had earlier on 12th July 2017 directed the appellant to deposit security or furnish bank guarantee as per law. On the next date, the appellant's advocate expressed inability to deposit due to financial problems. The Tribunal dismissed the appeal for non-compliance. The High Court examined Section 29 of the Act and held that the Tribunal must consider financial hardship and grant reasonable opportunity before dismissing an appeal for non-compliance with a pre-deposit direction. The court set aside the impugned order and remanded the matter back to the Tribunal for fresh consideration, directing the Tribunal to hear the appellant on the aspect of pre-deposit and pass appropriate orders in accordance with law.
Headnote
A) Tax Law - Appeal - Pre-deposit Condition - Section 29 of Goa Tax on Entry of Goods, 2000 - The Tribunal directed the appellant to deposit security amount or furnish bank guarantee as per law. The appellant expressed inability due to financial problems. The Tribunal dismissed the appeal for non-compliance without considering the financial hardship or granting further opportunity. Held that the Tribunal must consider financial hardship and grant reasonable opportunity before dismissing appeal for non-compliance with pre-deposit direction (Paras 3-6).
Issue of Consideration
Whether the Tribunal under the Goa Tax on Entry of Goods, 2000 was justified in dismissing the appeal for non-compliance with a direction to deposit security amount or furnish bank guarantee without considering the appellant's financial hardship and without granting a reasonable opportunity to comply.
Final Decision
The impugned order dated 4th August 2017 is set aside. The matter is remanded back to the Tribunal for fresh consideration. The Tribunal shall hear the appellant on the aspect of pre-deposit and pass appropriate orders in accordance with law.
Law Points
- Pre-deposit condition for appeal
- power of appellate tribunal to waive or reduce pre-deposit
- natural justice
- opportunity of hearing
- financial hardship consideration
Case Details
2019 LawText (BOM) (09) 221
WRIT PETITION NO. 85 OF 2018
M. S. SONAK, NUTAN D. SARDESSAI
Y.V. Nadkarni, Sanket Kamat for petitioner; D.J. Pangam, S. Redkar for respondents
State of Goa, Asst. Commissioner of Commercial Taxes, Commercial Tax Officer
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Nature of Litigation
Writ petition challenging order of Tribunal dismissing appeal for non-compliance with pre-deposit direction
Remedy Sought
Quashing of Tribunal order dated 4th August 2017 and direction to hear appeal on merits
Filing Reason
Tribunal dismissed appeal without considering financial hardship and without granting reasonable opportunity
Previous Decisions
Tribunal order dated 12th July 2017 directing deposit of security or bank guarantee; order dated 4th August 2017 dismissing appeal for non-compliance
Issues
Whether the Tribunal was justified in dismissing the appeal for non-compliance with pre-deposit direction without considering financial hardship
Whether the Tribunal ought to have granted reasonable opportunity to comply before dismissing the appeal
Submissions/Arguments
Petitioner argued that the Tribunal dismissed the appeal without considering financial hardship and without granting reasonable opportunity
Respondents supported the Tribunal's order
Ratio Decidendi
The Tribunal must consider financial hardship and grant reasonable opportunity before dismissing an appeal for non-compliance with a pre-deposit direction under Section 29 of the Goa Tax on Entry of Goods, 2000.
Judgment Excerpts
The challenge in this petition is to the order dated 4th August 2017 made by the Tribunal under the provisions of Goa Tax on Entry of Goods, 2000.
The Advocate has not complied with the direction of the Tribunal dated 12.07.2017. The Ld Advocate for the Appellant expresses inability of the Appellant to deposit the amount due to financial problems. Appeal is dismissed for non compliance.
Procedural History
The petitioner filed an appeal before the Tribunal under Section 29 of the Goa Tax on Entry of Goods, 2000. On 12th July 2017, the Tribunal directed the appellant to deposit security amount or furnish bank guarantee. On 4th August 2017, the Tribunal dismissed the appeal for non-compliance. The petitioner then filed the present writ petition before the High Court.
Acts & Sections
- Goa Tax on Entry of Goods, 2000: Section 29
