Pre-deposit as a stay condition under sales tax appeal rules was upheld as a valid exercise of appellate discretion.

Section 18A(5) of the Central Sales Tax Act, 1956 permits the appellate authority to grant stay on terms it considers fit, including requiring a specified portion of tax to be deposited before admission of the appeal. The Punjab and Haryana High Court treated the Tribunal's direction to deposit 10% of the tax due as a permissible pre-condition linked to admission and stay, not as an unlawful restriction on the appeal. The challenge to the interim order therefore failed, and no interference was warranted.

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Issues: Whether the Appellate Tribunal could make stay of recovery conditional upon deposit of 10% of the tax due while dealing with the appeal under Section 18A(5) of the Central Sales Tax Act, 1956.

Analysis: The condition imposed by the Tribunal was examined in the context of Section 18A(5), which authorises the highest appellate authority to grant stay subject to such terms and conditions as it thinks fit and to indicate the portion of tax to be deposited prior to admission of the appeal. On that footing, the direction requiring deposit of 10% of the tax due was treated as a permissible pre-condition connected with admission and stay, and not as an impermissible fetter on the appeal.

Conclusion: The condition of deposit was held to be consistent with Section 18A(5) of the Central Sales Tax Act, 1956 and no interference was warranted.

Final Conclusion: The challenge to the Tribunal's interim order failed, and the writ petitions were dismissed.

Ratio Decidendi: Under Section 18A(5) of the Central Sales Tax Act, 1956, the appellate authority may grant stay subject to terms and conditions, including a pre-deposit requirement as a condition for admission of the appeal.

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