Mandatory pre-deposit for appeal remains enforceable unless waived time is extended or statutory deposit is made within limitation.

Where a statute makes deposit of a specified sum a condition precedent to entertainment of an appeal, a partial waiver only suspends the immediate obligation to the extent and for the time granted. If the assessee lets that time lapse without extension, the default continues unless the statutory pre-deposit is completed within the prescribed period. Deposit of only the waived balance after expiry of the waiver period does not cure non-compliance merely because the appeal limitation period has not yet ended. The appeal was therefore not entertainable and the dismissal was upheld.

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Issues: Whether an appeal under section 9(1) of the U.P. Sales Tax Act could be entertained when the assessee deposited only the balance amount covered by a partial waiver order after the time fixed by that order, though before the appeal limitation expired; and whether, in default of such deposit, the assessee was required to obtain extension of time or to deposit the full statutory pre-deposit before expiry of limitation.

Analysis: The statutory scheme required deposit of twenty per cent of the assessed tax as a condition precedent to entertainment of the appeal. A partial waiver reduced the amount temporarily required to be deposited, but once the time fixed by the waiver order expired without compliance, the assessee remained in default unless the amount was extended by the appellate authority or the full statutory deposit was made within the limitation period. Deposit of only the waived balance after the expiry of the time granted did not satisfy the pre-deposit condition, and the defect was not cured merely because the appeal period had not expired when that amount was deposited.

Conclusion: The appeal was not entertainable, and the assessee was bound either to seek extension of time for the waived amount or to deposit the full twenty per cent within the limitation period. The dismissal of the appeal was in law.

Final Conclusion: The revision failed, and the order dismissing the appeal was upheld because the mandatory pre-deposit condition had not been fulfilled.

Ratio Decidendi: Where a statute makes deposit of a specified amount a condition precedent to entertainment of an appeal, partial waiver does not dispense with compliance beyond the time fixed in the waiver order unless the time is extended or the statutory deposit is otherwise made within the prescribed period.

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