Pre-deposit orders in fiscal appeals stand where based on relevant material, and interim tax relief may carry compensatory conditions.

In supervisory jurisdiction, a Tribunal's pre-deposit direction in an excise appeal was not interfered with because it was based on relevant financial material and showed application of mind; the challenge to the deposit condition therefore failed. Continued ad interim protection in tax matters may be granted only on terms that prevent delay from conferring an unfair financial advantage on the taxpayer and prejudicing public revenue, so the temporary relief was extended subject to a compensatory condition.

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Issues: (i) Whether the Tribunal's direction requiring pre-deposit of Rs. 20 lakhs in an excise appeal called for interference under Article 227 of the Constitution of India. (ii) Whether the ad interim protection earlier granted should be continued without a further monetary condition.

Issue (i): The Tribunal had examined the record, including the financial material placed by the assessee, and had dispensed with a substantial part of the amount otherwise required to be deposited. In supervisory jurisdiction, interference was not warranted where the pre-deposit direction was based on relevant material and disclosed application of mind.

Conclusion: The challenge to the Tribunal's pre-deposit order failed and the direction was upheld.

Issue (ii): A request for continuation of interim protection in tax matters was considered against the background that further delay in payment would confer financial advantage on the defaulting taxpayer at the cost of the public revenue. Time could be granted only on terms that prevented such unjust enrichment, and a compensatory condition was therefore imposed for the limited extension sought.

Conclusion: The ad interim relief was continued only subject to the condition imposed by the Court.

Final Conclusion: The petition was not entertained on merits and the Tribunal's pre-deposit direction remained undisturbed, while the temporary protection was continued only on a conditional basis.

Ratio Decidendi: In supervisory jurisdiction, a pre-deposit order in a fiscal appeal will not be interfered with when it is founded on relevant material and reasoned consideration, and interim protection in tax matters may be conditioned to prevent loss to public revenue from delay in payment.

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