The Supreme Court presided over the plea challenging the validity of the second proviso to Section 58(1) TNVAT Act, 2006.
The appellant, M/s V.V.V. Sons at the first appellate stage deposited 25% of the difference in the amount of tax assessed by the assessing authority and the tax admitted by the appellant whereas under the latter provision the appellant at the second appellate stage is required to deposit the sum ordered by the appellate authority.
The appellant challenged the validity of the second proviso to Section 51(1) of the Tamil Nadu Value Added Tax Act, 2006 and the second proviso to Section 58(1) of the Act.
Under Section 51(1) of the Tamil Nadu Value Added Tax Act, 2006, the appellant at the first appellate stage is obliged to deposit 25% of the difference in the amount of tax assessed by the assessing authority and the tax admitted by the appellant whereas under the latter provision the appellant at the second appellate stage is required to deposit the sum ordered by the appellate authority.
Mr. Jayant Muthraj, Additional Advocate General appearing for the State submits that the deposit of Rs. 13 crores satisfies the requirements of deposit of 25% of the sum and as such, nothing further need be done in the matter.
Mr. R.L. Ramani, counsel appearing for the appellant, however, submits that the validity of the latter provision was also under challenge and in case the appellant does not succeed at the first appellate stage, the question may still arise about the liability and how much money should be deposited at the second appellate stage.
The division bench of Justice Uday Umesh Lalit and Justice Vineet Saran said that the occasion to advance the submissions with regard to the validity of the second proviso to Section 58(1) of the Act arises, the appellant shall be at liberty to take appropriate measures.
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