Pre-deposit compliance secured by bank drafts can justify restoration of an appeal for hearing on merits.

Where the appellate pre-deposit requirement is ultimately secured by bank drafts or other acceptable security for the disputed amount, dismissal of the appeal for non-compliance may be set aside and the matter restored for decision on merits. The text notes that the Tribunal had dismissed the appeal after the assessee failed to comply with the deposit or bank guarantee direction, but the subsequent tender of bank drafts and permitted encashment justified restoration of the appellate remedy. The operative effect is that the appeal should be heard substantively once the required security is furnished.

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Issues: Whether the Tribunal's order dismissing the appeal for non-compliance with the pre-deposit condition was liable to be set aside and the appeal restored for decision on merits.

Analysis: The petitioner's appeal before the Tribunal had been dismissed after failure to comply with the direction to deposit the penalty amount or furnish bank guarantee. Before the Court, the petitioner tendered bank drafts for the entire amount ordered to be secured, which the Collector was permitted to encash. In these circumstances, the Court found it to grant relief by setting aside the dismissal order and enabling adjudication of the appeal on merits.

Conclusion: The dismissal order was set aside and the matter was remanded to the Tribunal for disposal on merits, in favour of the assessee.

Final Conclusion: The petitioner obtained restoration of the appellate remedy, with the disputed amount secured, and the Tribunal was directed to decide the appeal substantively.

Ratio Decidendi: Where the pre-deposit requirement is ultimately satisfied by furnishing secure payment for the disputed amount, dismissal of the appeal for non-compliance should be set aside and the appeal heard on merits.

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