Conditional restoration of writ petitions after cess deposit and return filing left the underlying liability open for merits review

Writ petitions dismissed by the High Court for delay were restored conditionally, with the Court declining to interfere with the dismissal on limitation alone. Restoration was made subject to compliance with specified conditions, including deposit of outstanding cess and filing of returns. For assessees covered by later demand notices, monthly returns and payment of outstanding amounts were required, and the ex parte assessments were to be set aside after such deposit, followed by fresh assessments on merits. The challenge to liability under the Textiles Committee (Cess) Act and Rules was left open for adjudication by the High Court.

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Issues: Whether writ petitions dismissed by the High Court for delay should be restored subject to deposit of outstanding cess and filing of returns, and whether the assessee's challenge to the cess liability should remain open for adjudication on merits.

Analysis: The appeal did not call for interference with the High Court's dismissal on the ground of delay, but the Court took note of the appellants' willingness to clear outstanding liabilities without prejudice to their rights and contentions. As the dispute involved interpretation of the Textiles Committee (Cess) Act and the Rules, the Court directed restoration of the writ petitions on the file of the High Court, subject to compliance with specified conditions. In respect of the assessees covered by the later demand notices, the Court required filing of monthly returns and deposit of outstanding amounts, with the ex parte assessments to be set aside upon such deposit and fresh assessments to follow on merits.

Conclusion: The writ petitions were restored conditionally, the assessee was required to comply with the stipulated deposits and filings, and the merits of the cess liability were left open for decision by the High Court.

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