Triveni Engineers Vs Assessing Authority CT And GST Circle
Date: August 3, 2025
Subject Matter
Dismissal of Appeal for Non-Payment of Pre-Deposit Upheld
Summary
The Supreme Court of India upheld the dismissal of a statutory appeal filed by M/s. Triveni Engineers, reinforcing the mandatory nature of the pre-deposit requirement for appeals under tax laws. The petitioner's appeal against an assessment order was dismissed because it failed to comply with Section 16(4) of the Odisha Entry Tax Act, 1999, which mandates the payment of 20% of the disputed tax as a condition precedent for the appeal to be "entertained" by the appellate authority.
The petitioner had sought to reduce this pre-deposit to 10%, a plea that was rejected by both the High Court and the Supreme Court. The Supreme Court's decision underscores that the language of the statute is unambiguous and leaves no room for judicial discretion to waive or alter the pre-deposit amount. The court cannot rewrite the law or insert new words into a statutory provision.
The ruling affirms that failure to comply with the mandatory pre-deposit makes an appeal a "dead letter" that cannot be entertained. While dismissing the petition, the court noted that the petitioner was free to explore other legal remedies.
FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER
1. The Statutory Appeal before the Additional Commissioner, CT & GST, was dismissed as not maintainable as the petitioner fail to deposit 20% of the tax demanded, which is pre-condition for maintaining such an appeal. The Revision against the said order was also dismissed and so was the Writ Petition.
2. We find no error or illegality in dismissing the appeal for non payment of 20% of the tax demanded.
3. The present petition is, accordingly, dismissed.
4. However, the petitioner is at liberty to explore other alternative legal remedies that may be available to it in law.
5. Pending application(s), if any, shall stand disposed of.
This matter is taken up through Hybrid mode.
2. The order dated 17.01.2025 passed by the Commissioner of Sales Tax in disposing of the revision petition against the order of rejection of appeal as the condition for pre-deposit of 20% of the disputed tax/demand has not been complied with.
3. The attention of this Court is drawn to Section 16(4) of the Odisha Entry Tax Act, 1999 which provides that appeal against an order of assessment shall not be entertained by the Appellate Authority, unless it is accompanied by satisfactory proof of payment of admitted tax in full and 20% of the tax or interest or both, in dispute.
4. Once the statute has put a condition for entertainability of an appeal as condition precedent, such appeal in absence of the compliance thereof is not liable to be entertained by the Appellate Authority. The word “entertained” has to be construed in a more pragmatic manner and should not be used zealously to secure the dismissal. Unless that deposit mandated under the said provision is made, the appeal would remain a dead letter and shall not be entertained by the Authority. The contention of the appellant that they may be permitted to deposit 10% of the disputed tax demand. We do not find any reference of the said numerical word but for the sine qua none to make the appeal entertainable appellant is to deposit 20% of the disputed tax or interest or both. The Court cannot pass an order which per se is contrary to the statutory provisions. The Court can neither rewrite the statute nor to incorporate any word into the statutory provisions. When the language used therein is unambiguous and conveys the laudable message, it does not call for any further interpretation to be made in this regard.
5.It is manifest from Section 16 (4) of the Odisha Entry Tax Act that 20% of the tax or interest or both in dispute should be deposited so that appeal can be entertained by the Authority and, therefore, the contention that the writ petitioner should be permitted to deposit 10% thereof is unsustainable.
6. Considering the spirit of the statutory provision, we permit the writ petitioner to deposit 20% of the disputed tax or interest or both before the Appellate Authority within three weeks from today and in the event of such deposit, the Appellate Authority shall entertain the said appeal and may pass an appropriate order as permissible in law.
7. With the aforesaid observation and direction, the writ petition stands disposed of.