Conditional condonation of delay restored the appeal for decision on merits, with deposit and guarantee terms imposed.

An appeal dismissed only for delay, without examination of merits, was held unwarranted where conditional condonation could balance the lapse with the interests of justice. The delay was condoned, the appeal was restored for decision on merits, and compliance with deposit and bank guarantee conditions was required. Once restoration was directed, the stay order ceased to survive.

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Issues: Whether the Collector was justified in dismissing the assessee's appeal solely on the ground of delay without examining the merits, and whether the appeal should be restored with condonation of delay on terms.

Analysis: The delay in filing the appeal was undisputed, but dismissal of the appeal outright without considering the merits was held to be unwarranted. The appropriate course was to impose terms while granting an to have the appeal heard on merits, since such conditional condonation balances the lapse of delay with the interests of justice. The Tribunal's stay order also ceased to survive once restoration of the appeal was directed, and conditional directions were issued for deposit and bank guarantee.

Conclusion: The delay was condoned, the appeal was restored to the Collector for decision on merits, and the petition succeeded, subject to compliance with the stated conditions.

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