Quasi-judicial pre-deposit discretion must be reasoned and fair before an appeal is entertained.

The appellate authority's discretion under the proviso to section 20 of the Tripura Sales Tax Act, 1976 to require pre-deposit before entertaining an appeal is quasi-judicial, not mechanical. It must consider the facts of each case, decide what amount, if any, should be deposited, and record reasons for the decision. The power must be exercised fairly and reasonably, not arbitrarily. On the facts discussed, the demand for deposit of 65 per cent and 70 per cent of the assessed tax was unsupported by reasons and therefore unsustainable on the reasoning recorded.

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Issues: Whether the appellate authority's power under the proviso to section 20 of the Tripura Sales Tax Act, 1976 to insist on payment of a portion of the assessed tax before entertaining an appeal is quasi-judicial in nature and must be exercised reasonably and for recorded reasons.

Analysis: The proviso to section 20 permits the appellate authority to decline entertainment of an appeal unless it is satisfied that the assessed tax or penalty has been paid, or such amount as it directs. That power necessarily involves judicial assessment of the facts of each case and cannot be exercised mechanically. The authority must consider the application, decide what amount, if any, should be deposited, and record reasons for the decision. The discretion is therefore quasi-judicial and must be exercised fairly, reasonably, and not according to whim or humour. On the facts, the demand for deposit of 65 per cent and 70 per cent of the assessed tax was not supported by reasons.

Conclusion: The power under the proviso is quasi-judicial and must be exercised judiciously with reasons; the impugned demand, as made, was unsustainable on the reasoning recorded.

Final Conclusion: The petitions were ultimately disposed of with interim directions allowing the appeals to proceed on deposit of 15 per cent of the assessed tax, while clarifying that the arrangement would not operate as a precedent.

Ratio Decidendi: Where a statute authorises an appellate authority to require pre-deposit as a condition for entertaining an appeal, the authority must exercise that discretion quasi-judicially, reasonably, and by recording reasons.

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