Summary
The specified tax deposit under the Andhra Pradesh and corresponding Telangana appeal provisions could be made after filing but before the appeal’s first consideration for admission or condonation of delay. Filing limitation and the deposit condition were distinct; the authority could not extend the latter deadline. Appeals with timely deposits were restored, those depositing only after rejection failed, and unresolved input-tax-credit adjustment claims were remitted for consideration.
Issues
- When the mandatory tax-deposit condition must be satisfied in relation to filing and first consideration of a tax appeal.
- How appeals involving post-rejection deposits or unexamined claims for adjustment of input-tax credit should be dealt with.
Provisions considered
- Sections 19 and 21(2), deposit provisos, Andhra Pradesh General Sales Tax Act, 1957The deposit requirement operates at first consideration of the appeal, separately from the statutory filing and condonation periods; corresponding Telangana provisions were treated similarly. (¶¶ 7–9, 12–14)
- Sections 31 and 33(2), deposit provisos, Andhra Pradesh Value Added Tax Act, 2005Proof of the prescribed payment must be produced at first consideration for admission or condonation; the appellate authority cannot extend time beyond that event. (¶¶ 7–9, 12–14)
Held
- Filing, institution or presentation differs from entertaining an appeal. The statutes did not insist on deposit with filing, but mandatory payment could not be postponed beyond first consideration, nor cured by deposit after rejection. (¶¶ 8–9, 12–14, 19–20)
- The contrary rule in Ankamma Trading Company stood impliedly overruled. The brief Supreme Court appellate judgments could not be disregarded on the asserted ground that they were not binding. (¶ 10–11)
- To prevent appeals being kept under defect to defer payment, the authority must first consider each appeal within thirty days of filing. (¶ 17)
- Specific pleas that available input-tax credit satisfied the deposit requirement had not been examined. Those matters required fresh High Court consideration, without deciding adjustment entitlement in the Supreme Court. (¶¶ 30–34, 37–39)
Result
Appeals with deposits before first consideration restored; Appeals 4098–4099/2016 dismissed. State Appeal 8452/2016 disposed of subject to the first-consideration rule. Appeals 5343/2019 and 10670/2016 remitted to the High Court on unexamined credit-adjustment pleas, all contentions open. Appeal 3349/2018 delinked for separate merits hearing. No costs in the disposed matters.