No pre-deposit u/s 62(5) of PVAT Act, 2005 required in time barred assessments

Punjab VAT Tribunal in an very important case namely Saguna Industries Vs.State of Punjab has observed  that there is no need to deposit 25% of demand u/s 62(5) of Punjab VAT Act, 2005 before entertaining appeal in cases of time-barred assessments. It is to be noted hereby that section 62(5) of Punjab VAT Act, 2005 provides that 25% of total tax, penalty and interest must be deposited before the appeal is being entertained.

In this case the first appeal was dismissed  By DETC(Appeals) for non-deposit of 25% pre-deposit u/s 62(5). However the Tribunal without asking the appellant to deposit 25% of pre-deposit decided the case on merits and accepted the appeal holding that the assessment of year 2005-06 is time barred hence the orders of both the authiorities below are set aside.

The implications of this order are that in time barred assessments there is no need for pre-deposit of 25% u/s 62(5) of Punjab VAT Act, 2005.

Full Judgment is provided herebelow:


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