Punjab Govt considering adding of word additional demand in section 62(5) of PVAT Act, 2005

There is a news that Punjab Government is planning to amend section 62(5) of Punjab VAT Act, 2005 to provide for prior minimum payment of 25% of additional demand before any appeal is entertained. The provision u/s 62(5) as existing now provides for prior minimum payment of 25% of total tax, penalty and interest, which the Hon'ble P & H High Court in Ahluwalia case and Punjab VAT Tribunal in many other cases have interpreted to mean that if additional demand is raised in any order under PVAT Act 2005 then 25% prior minimum payment will be of the total tax, penalty and interest  and not that of additional demand. Input Tax Credit and taxes paid in the returns by the assessee-dealer are presumed to be part of such 25% prior minimum payment.
(Read my previous article on this to understand more). 

But after the verdict of High Court and VAT Tribunal, the Punjab Government is considering adding the word additional demand to section 62(5) of Punjab VAT Act, 2005. If such amendment is carried out then it will become difficult for dealers to go in for appeal, more so in cases where additional demand is wrongly created.

Last year there was a news (see the news here)  that Supreme court is going to examine the validity of provisions of section 62(5) of Punjab VAT Act in Femina Jewellery Pvt. Ltd case, I dont know exactly what is the status of that case pending in the Supreme Court. However, if word "additional demand" is added in section 62(5) then I think the rationale behind it should also be examined by higher judiciary.

The news about amendment in section 62(5) is produced herebelow:

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