Condonation of delay in tax deposit must be decided first when appeal maintainability depends on statutory compliance.

Where maintainability of an appeal depends on prior deposit of admitted tax under section 9(1-B) of the U.P. Sales Tax Act, an appellate forum must first decide any bona fide application seeking condonation of delay in making that deposit. The Tribunal's failure to examine the assessee's condonation request on financial exigency grounds, and to record findings on whether it could be entertained and whether sufficient cause existed, was treated as a material procedural defect. The order was set aside and the matter remitted for fresh disposal of the condonation application, followed by decision of the appeals according to law.

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Issues: Whether the Tribunal was bound to consider the assessee's application for condonation of delay in depositing the admitted tax and, if so, whether the appeals should be restored for fresh disposal.

Analysis: The requirement under section 9(1-B) of the U.P. Sales Tax Act that an appeal shall not be entertained without proof of payment of admitted tax was treated as mandatory by the appellate authorities. However, once the assessee placed an application before the Tribunal seeking condonation of delay on the ground of financial exigencies, the Tribunal was required to examine that application and record findings on whether the request could be entertained for the first time at that stage and whether sufficient cause existed for condonation. The omission to consider the application at all was a material procedural defect.

Conclusion: The Tribunal's order was set aside and the matter was remitted for disposal of the condonation application and thereafter for decision of the appeals according to law, in favour of the assessee.

Final Conclusion: The revisions succeeded because the Tribunal failed to adjudicate the condonation request before disposing of the appeals, necessitating a fresh decision on the appeals after dealing with that application.

Ratio Decidendi: When a party files a bona fide application for condonation before the appellate forum, the forum must decide that application on merits before finally disposing of the appeal, especially where maintainability depends on compliance with a statutory pre-condition.

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