Statutory limitation on appeal preserved, but conditional hearing on merits allowed after further tax deposit.

An appeal filed beyond the statutory limitation under Section 85 of the Finance Act, 1994 could not be entertained on merits, and the limitation-based dismissal was sustained. However, because the petitioner had already deposited part of the disputed tax and the Court considered that there could be a case on merits, it directed an additional deposit of disputed tax within 30 days as a condition for the appeal to be heard and decided on merits, without reference to limitation.

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Issues: Whether the appeal could be entertained despite the delay, and whether the petitioner should be granted an opportunity to have the appeal considered on merits notwithstanding the bar of limitation under the governing statute.

Analysis: The appellate authority was bound by the limitation prescribed under Section 85 of the Finance Act, 1994, and its dismissal of the appeal on limitation could not be faulted. At the same time, the petitioner had already deposited 7.5% of the disputed tax, and the Court found that the petitioner could have a case on merits. In that background, the Court directed deposit of an additional 17.5% of the disputed tax within 30 days as a condition for the appeal to be entertained and decided on merits without reference to limitation.

Conclusion: The limitation-based dismissal was sustained, but the petitioner was granted a conditional opportunity to have the appeal heard and decided on merits upon further deposit of the stipulated amount.

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