Conditional appellate compliance cured later by full payment and interest, so dismissal for prior default was set aside.
Where a conditional appellate requirement is ultimately satisfied and the delay is compensated by payment of interest, dismissal of the appeal for earlier non-compliance cannot stand. The assessee had deposited all instalments and paid interest, curing the default. The dismissal orders and the Tribunal's affirmation were therefore set aside, and the appeal was restored to the first appellate authority for decision on merits.
Issues: Whether the orders dismissing the appeal for non-compliance of the payment condition were liable to be set aside after the assessee deposited all instalments with interest and whether the appeal should be restored for decision on merits.
Analysis: The assessee had been directed to deposit a part of the demand and furnish security for the balance as a condition for continuation of the appeal. The record showed that the requisite amount was ultimately deposited and interest for the delay was also paid. In these circumstances, the subsequent default stood cured. The earlier dismissal of the appeal for non-compliance, and the Tribunal's affirmation of that dismissal, could not be sustained once the full monetary compliance had been made. The proper course was to restore the matter so that the first appellate authority could examine the appeal on merits.
Conclusion: The dismissal orders were set aside, the delay in depositing the instalments was condoned, and the appeal was remanded to the first appellate authority for decision on merits.
Final Conclusion: The assessee obtained restoration of the appellate remedy, with the dispute returned to the first appellate authority for adjudication in accordance with law.
Ratio Decidendi: Where a conditional appellate requirement is ultimately satisfied and the delay in compliance is duly compensated, dismissal of the appeal solely for prior non-compliance should be set aside and the matter restored for merits consideration.
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AI Drafter ✕
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