Pre-deposit relief and surety bond conditions must be decided case by case after hearing the assessee.

The proviso to section 39(5) of the Haryana General Sales Tax Act, 1973 gives the appellate authority discretion to grant relief from pre-deposit, but that discretion must be exercised on the facts of each case. A blanket insistence on a surety bond as a condition for entertaining the appeal is not justified. The assessee must be given an opportunity to place material showing inability to comply, and refusal to do so offends natural justice. The surety-bond condition was therefore unsustainable, and the exemption application had to be reconsidered afresh after hearing the assessee.

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Issues: Whether the appellate authority could insist on furnishing a surety bond as a condition for entertaining an appeal under the proviso to section 39(5) of the Haryana General Sales Tax Act, 1973, and whether the application for exemption from pre-deposit required reconsideration after hearing the assessee.

Analysis: The proviso to section 39(5) confers discretion on the appellate authority to grant relief from pre-deposit, but that discretion must be exercised on the facts of each case. A blanket insistence on surety bond is not warranted as a rigid formula. Before imposing such a condition, the assessee should be afforded an opportunity to place material showing inability to comply, and failure to do so offends the principles of natural justice.

Conclusion: The order imposing the surety-bond condition was unsustainable and the application under the proviso to section 39(5) was required to be decided afresh after granting an opportunity of hearing to the assessee.

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