Threshold rejection of statutory appeal for unpaid admitted tax remains appealable, and assessee must get a fair chance to respond.

An order rejecting a statutory appeal in limine for non-payment of admitted tax was treated as an order passed in appeal because the same appellate provision covers disposal on merits and on preliminary grounds, and the rejection effectively confirms the assessment. On that basis, the order was appealable to the Tribunal, and the Tribunal was wrong to hold otherwise. Before such threshold rejection, the appellate authority must give the assessee a reasonable opportunity to explain non-compliance, since factual or legal grounds may show that no admitted tax remains unpaid or that adjustments, refunds, exemptions, or later events affect liability.

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Issues: (i) whether an appeal lies to the Sales Tax Appellate Tribunal against an order of the first appellate authority rejecting an appeal in limine for non-payment of admitted tax; (ii) whether the assessee was entitled to an opportunity of being heard before such rejection.

Issue (i): whether an appeal lies to the Sales Tax Appellate Tribunal against an order of the first appellate authority rejecting an appeal in limine for non-payment of admitted tax.

Analysis: The right of first appeal under the Act is subject to the condition that proof of payment of admitted tax accompanies the appeal, but the rejection of an appeal for breach of that condition is still an order passed in the appeal. The provision governing disposal of appeals by the Appellate Assistant Commissioner is the same provision that authorises disposal on merits as well as on preliminary grounds such as limitation, irregularity, or non-payment of admitted tax. An order refusing to entertain the appeal therefore has the effect of confirming the assessment and answers the description of an order made in appeal.

Conclusion: The order rejecting the appeal in limine was appealable to the Tribunal, and the Tribunal erred in holding otherwise.

Issue (ii): whether the assessee was entitled to an opportunity of being heard before such rejection.

Analysis: A refusal to entertain the appeal for want of proof of payment of admitted tax is not a mere ministerial act. The assessee may have factual or legal grounds showing that no admitted tax remains unpaid or that adjustments, refunds, exemptions, or subsequent events affect the liability. The appellate authority must therefore call for objections and afford the assessee a reasonable opportunity to put forward its case before rejecting the appeal, though an oral hearing will depend on the circumstances of the case.

Conclusion: The assessee was entitled to a reasonable opportunity to explain non-compliance before the appeal was rejected.

Final Conclusion: The Tribunal's view on maintainability was set aside, the matter was remitted for fresh consideration on the limited question whether the appeals could validly be rejected at the threshold, and the writ petitions were not decided on merits because they were withdrawn.

Ratio Decidendi: An order rejecting a statutory appeal at the threshold for failure to satisfy a condition precedent to entertainment is nevertheless an order passed in appeal and, if it effectively confirms the assessment, is appealable under the provision governing disposal of appeals; before such rejection, the assessee must be given a reasonable opportunity to be heard.

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