Admitted tax non-payment cannot justify rejecting an appeal when later paid and no other defect survives.

A first appellate authority should not reject an appeal solely because admitted tax was unpaid at filing if the assessee later pays it and no other defect remains. Under section 41 of the Kerala General Sales Tax Act, 1963, the technical default in initial non-payment does not justify refusal at the threshold where the reason for non-payment was disclosed and the appeal is otherwise in order. The appeal should be admitted and decided on merits if it is free from other defects.

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Issues: Whether the first appellate authority was justified in rejecting the assessee's appeal solely on the ground that the admitted tax had not been paid, and whether the appeal should be admitted for disposal on merits after subsequent payment of the admitted tax.

Analysis: The challenge arose under section 41 of the Kerala General Sales Tax Act, 1963. The admitted tax had not been paid when the appeal was filed, which formed the basis for rejection at the appellate stage. The Court noted that the assessee had already indicated the reason for non-payment and that the admitted tax had subsequently been paid. In those circumstances, the matter warranted consideration on merits rather than refusal at the threshold, provided the appeal was otherwise free from defects.

Conclusion: The appeal ought to be admitted by the first appellate authority for disposal on merits if it is otherwise free from defects.

Ratio Decidendi: Where the admitted tax is subsequently paid and no other defect survives, a technical rejection of the appeal for non-payment of admitted tax should not stand in the way of admission for decision on merits.

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