Sufficient cause for delayed surety-bond compliance can justify restoration of a sales tax appeal for merits.

In an appeal under the Haryana General Sales Tax Act, 1973, compliance with the surety-bond condition fixed for entertaining the appeal was treated as capable of extension where delay was explained. The document notes that the appellant said he was out of business and unable to arrange the bond in time, later furnished the bond, and the proper course was to extend time and hear the matter on merits rather than allow dismissal for non-compliance to stand.

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Issues: Whether the appellant had shown sufficient cause for failure to furnish the surety bond within the time fixed under section 39(5) of the Haryana General Sales Tax Act, 1973, so as to justify setting aside the dismissal of the appeal and restoring it for decision on merits.

Analysis: The appeal under section 39 of the Haryana General Sales Tax Act, 1973 was initially entertained without prior payment of tax subject to furnishing of a surety bond within the time fixed by the Joint Commissioner. The surety bond was not furnished within that period, and the appeal was dismissed for non-compliance. The Court found that the appellant had explained the delay by showing that he was out of business and unable to arrange the bond in time. It further held that the bond was eventually furnished and that the proper course was to extend the time for compliance and afford a hearing on merits rather than allow the dismissal to stand.

Conclusion: Sufficient cause for delayed compliance was established, and the dismissal of the appeal was liable to be set aside with the matter restored for hearing and decision on merits.

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