Security in place of full pre-deposit may suffice for hearing a sales tax appeal where revenue is adequately protected.

Section 43(5) of the Delhi Sales Tax Act, 1975 permits the appellate authority to regulate stay of recovery by imposing conditions for hearing an appeal, including payment in whole or in part, furnishing security, or other suitable terms. An unconditional stay is not contemplated. On the stated facts, where no tax had been collected from customers, security was treated as sufficient protection for revenue, and the appeal was allowed to proceed on that basis without insisting on full pre-deposit.

---

---

Issues: Whether, under section 43(5) of the Delhi Sales Tax Act, 1975, the appeal could be heard on the petitioner furnishing security instead of insisting on full pre-deposit of the sales tax demand.

Analysis: The provision empowers the appellate authority to regulate stay of recovery as a condition for hearing the appeal, including requiring payment of the tax in whole or in part, or acceptance of security or other terms. An unconditional stay is not contemplated. On the facts, no tax had been collected from customers, and the furnishing of security was considered adequate to safeguard recovery while allowing the appeal to proceed.

Conclusion: The appeal was directed to be heard on merits upon furnishing of security, and insistence on full payment as a condition for hearing was not required in the circumstances.

---