Pre-deposit default and appellate hearing: further time granted to deposit the balance and secure merits-based disposal.

Where an appeal was dismissed only for failure to comply with a pre-deposit direction, the High Court treated a request for further time to deposit the remaining balance as reasonable when most of the directed amount had already been paid. The court considered the balance comparatively small and held that additional time would protect the revenue while preventing the appeals from being terminated solely for default in deposit. On that basis, the assessee was granted eight weeks to make the balance pre-deposit, and the first appellate authority was directed to hear and decide the appeals on merits after compliance.

---

---

Issues: Whether the assessee should be granted further time to make good the balance pre-deposit and, on such deposit, the first appellate authority should be directed to hear and decide the appeals on merits.

Analysis: The appeals had been dismissed only for non-compliance with the pre-deposit direction. A substantial amount of the directed deposit had already been made, and the remaining balance was comparatively small. In these circumstances, the request for further time to deposit the balance amount was found to be reasonable and sufficient to protect the revenue while ensuring that the appeals are not terminated merely on account of the pre-deposit default.

Conclusion: The assessee was granted eight weeks to deposit the balance pre-deposit, and upon such deposit the first appellate authority was directed to decide the appeals on merits.

---