Condonation of delay in pre-deposit compliance accepted where installment payments were justified by financial difficulty.

Delay in complying with a pre-deposit direction may be condoned where the appellant shows a reasonable explanation for staged payment and the Tribunal considers that procedural discretion can be exercised under Rule 41 of the CESTAT Procedure Rules, 1982. The note states that the deposit was made in installments because the amount could be arranged only with difficulty, and that this explanation was accepted despite opposition from the respondent. The practical effect is that the Tribunal treated the delay in making the pre-deposit as condonable in the appellant's favour.

---

---

Issues: Whether the delay in complying with the pre-deposit direction and making the pre-deposit in installments should be condoned.

Analysis: The application sought condonation of delay in making the pre-deposit directed in the stay proceedings. The Tribunal considered the explanation that the amount could be arranged only with difficulty and that the deposit was made in installments. The respondent opposed the request, but the Tribunal found the explanation sufficient to justify exercise of the procedural discretion under Rule 41 of the CESTAT Procedure Rules, 1982.

Conclusion: The delay in making the pre-deposit was condoned in favour of the appellant.

---