Pre-deposit exemption in tax appeals denied where financial position showed capacity to pay, and appellate authorities gave recorded reasons.

The right of appeal under the taxing statutes was conditional on payment of the assessed tax, and total waiver of pre-deposit could be granted only on recorded satisfaction that the dealer was unable to pay. At the exemption stage, the authority was not required to examine the merits of the assessment in depth. Since the appellate authority considered the petitioner's financial position, including its running business and substantial turnover, and declined complete waiver, the Tribunal was justified in agreeing and only modifying the instalment terms. The challenge alleging non-consideration of hardship and absence of a speaking order therefore failed, and refusal of total exemption from pre-deposit was upheld.

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Issues: Whether the appellate authority and the Tribunal were justified in refusing total exemption from pre-deposit of the disputed tax and instead directing the petitioner to deposit the amount in instalments before the statutory appeals could be heard.

Analysis: The right of appeal under the taxing statutes was subject to the statutory condition of payment of the assessed tax, and exemption could be granted only when the authority was satisfied, for recorded reasons, that the dealer was unable to pay. At the stage of considering exemption, the authority was not required to examine the merits or legality of the assessment in depth. The record showed that the appellate authority had considered the petitioner's financial position, noted its running business and substantial turnover, and declined complete waiver. The Tribunal concurred with that view and only modified the instalment amount. The challenge based on non-consideration of financial hardship and alleged absence of a speaking order was therefore without merit.

Conclusion: The refusal to grant total exemption from pre-deposit was upheld and the writ petition failed.

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