Delay condonation in statutory appeals may warrant conditional stay of tax recovery pending appellate decision.

Statutory appeals that can proceed only after condonation of delay may justify interim judicial protection where revenue recovery is already underway. The appellate authority was directed to decide the delay applications within a fixed time and, if delay was condoned, to dispose of the appeals thereafter within the stipulated period. In the meantime, recovery of tax and penalty was stayed to preserve the appeal remedy, but the stay was made conditional on deposit of one-third of the amount due within two weeks.

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Issues: Whether the appellate authority should be directed to consider the applications for condonation of delay in filing the appeals, and whether recovery of tax and penalty should be stayed pending such consideration and disposal of the appeals.

Analysis: The assessment orders and penalty orders were already under challenge in appeals, but those appeals could be entertained only if the delay applications were first decided. Since the delay petitions and stay applications were pending before the appellate authority and revenue recovery proceedings had meanwhile been initiated, interim protection was warranted to preserve the petitioner's right of appeal. The Court also balanced the interests of revenue by making the stay conditional on deposit of a portion of the amount due.

Conclusion: The appellate authority was directed to decide the delay condonation applications within a fixed time and, if delay was condoned, to dispose of the appeals thereafter within the specified period. Recovery of tax and penalty was stayed in the meantime, subject to the petitioner remitting one-third of the amount due within two weeks.

Ratio Decidendi: Where statutory appeals are pending subject to condonation of delay, the appellate authority may be directed to decide the delay applications expeditiously, and interim protection against coercive recovery may be granted on equitable terms pending such decision.

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