Pre-deposit dismissal recalled where a High Court stay was already in force and the appeals were restored.

A dismissal of appeals for non-compliance with a pre-deposit direction under Section 35F was treated as unsustainable where an interim High Court stay of further proceedings had already been granted on the compliance date. The Tribunal held that the dismissal was vitiated because the stay order had not been brought to its notice, constituting an error apparent on the face of the record. The restoration application was held maintainable, and the dismissal order was recalled with the appeals restored to their original numbers.

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Issues: Whether the order dismissing the appeals for non-compliance with the pre-deposit direction under Section 35F should be recalled and the appeals restored in view of the interim stay granted by the High Court.

Analysis: The Tribunal found that, on the date fixed for reporting compliance, an interim stay of all further proceedings had already been granted by the High Court in the connected writ proceedings. Since the dismissal for non-compliance was passed without the stay order being brought to the Tribunal's notice, the dismissal was held to be vitiated by an error apparent on the face of the record. The majority also treated the dismissal as unsustainable in the circumstances and held that the restoration application was maintainable.

Conclusion: The dismissal order was recalled and the appeals were restored to their original numbers, in favour of the assessee.

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