Pre-deposit compliance modified with staged payment and undertaking, while tax appeals were remanded for fresh merits consideration.

The appellate court modified a substantial pre-deposit requirement by permitting staged payment, an undertaking, and a bond in place of the bank guarantee, while directing compliance with the revised terms. It also remanded the appeals to the First Appellate Authority for fresh decision on merits, noting that the earlier dismissal had occurred without examination of the substantive tax issues. The intervention was limited to the mode of compliance and remand, without entering into the merits of the tax dispute.

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Issues: Whether the Tribunal's direction requiring substantial pre-deposit deserved interference and whether the appeals were liable to be remanded to the First Appellate Authority.

Analysis: The appellate court intervened without going into the merits of the tax dispute. Considering the appellant's willingness to secure part of the pre-deposit by staged payment and an undertaking, and noticing that the First Appellate Authority had dismissed the appeals without examining the merits, the court found it appropriate to modify the mode of compliance and send the matter back for fresh consideration. The appellant was directed to deposit Rs. 2 crores in instalments in lieu of bank guarantee and to furnish an undertaking and bond for the remaining amount.

Conclusion: The pre-deposit directions were modified, and the matter was remanded to the First Appellate Authority for decision on merits after compliance with the revised directions.

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