High Court has the power to reduce or waive the amount of pre-deposit paid at the time of filing the appeal due to financial hardship faced by the Assessee

Last updated: 18 December 2023

Save Share

Quick Summary

The Punjab and Haryana High Court has confirmed that it possesses inherent powers under Article 226 of the Constitution to reduce or waive the mandatory pre-deposit amount required when filing an appeal. This decision was made in a case where the appellant demonstrated significant financial hardship, making the original pre-deposit requirement untenable. The court ultimately allowed the appeal to proceed upon payment of a reduced pre-deposit.

Court :
Punjab and Haryana High Court

Brief :
The Hon'ble Punjab and Haryana High Court in the case of M/s. Shiva TexFabs Ltd. v. State of Punjab and Ors. [CWP 2650 of 2022 dated October 3, 2023] reduced the amount of pre-deposit required under the Punjab Value Added Tax Act, 2005 ("the Punjab VAT Act") from twenty-five percent to ten percent due to financial hardship faced by the Petitioner thereby holding that, the High Court has inherent powers under Article 226 of the Constitution to waive or reduce the pre-deposit amount required at the time of filing the appeal.

Citation :
CWP 2650 of 2022 dated October 3, 2023

Daily Limit Reached