Pre-deposit condition modified for appeal hearing, with reduced deposit and stay of balance demand pending merits review.

A pre-deposit condition for hearing an appeal was reconsidered in light of the appellant's position as an employee of a CHA and the approach taken in earlier proceedings arising from the same transaction chain. The court maintained consistency with that earlier treatment and reassessed the deposit requirement against the surrounding circumstances. The impugned direction to deposit 1% of the penalty was modified, the pre-deposit was reduced to Rs. 5 lakhs, and the balance demand was stayed so that the appeal could be heard on merits.

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Issues: Whether the Tribunal's direction to deposit 1% of the penalty as a condition for hearing the appeal deserved modification.

Analysis: The petitioner was an employee of a CHA and, in earlier proceedings arising from the same chain of transactions, a substantially lower pre-deposit had been directed having regard to that status. The present challenge concerned a much higher penalty, and the Court maintained consistency with the earlier approach by reassessing the pre-deposit requirement in light of the petitioner's position and the circumstances of the case.

Conclusion: The pre-deposit condition was reduced to Rs. 5 lakhs and the balance demand was stayed, with the appeal to be heard on merits.

Final Conclusion: The impugned pre-deposit order was modified and the petition was disposed of with consequential relief.

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