Bombay High Court: G Khanna & Company Gets Another Chance to Address Payment Shortfall

Quick Summary: The Bombay High Court has ordered a redo for G Khanna & Company. Their appeal was previously dismissed because they didn’t pay enough money upfront. Now, they get another chance to make things right.

The Case Kicks Off

G Khanna & Company, a business from Mumbai, filed a complaint against the Union of India and the State of Maharashtra. They were upset because an earlier appeal was thrown out. Why? They didn't pay 10% of the tax amount, which was about ₹12.76 lakhs, but they only paid ₹8.62 lakhs.

The Arguments

• Company’s Side: Mr. Mahesh Raichandani, speaking for G Khanna & Company, argued that they should have been allowed to explain or fix the payment issue. He mentioned past cases where courts allowed such corrections.

• Government’s Side: Ms. Shehnaz Bharucha, speaking for the other side, said that the company already had a chance to talk about the payment issue, but they didn’t bring it up back then.

Court’s Decision

The judges, M.S. Sonak and Advait M. Sethna, looked into the case and found:

• The company didn’t get a fair chance to fix the payment problem.
• Previous cases, like JEM Exporter and D N Polymers, showed that it’s okay to give a chance to correct mistakes.

What Happens Next?

The court canceled the earlier decision and sent the case back to the Appellate Authority. Now, G Khanna & Company will:

• Get a chance to prove there was no payment shortfall.
• If there was a shortfall, they’ll have about 4 weeks to fix it.

Final Thoughts

The judges made it clear that they haven’t decided on the actual tax issues yet. This is just about making sure the process is fair. The case will continue if the payment issue is resolved.