Delayed pre-deposit compliance can attract interest, with appeal restoration and expeditious hearing linked to payment.

Delayed compliance with a pre-deposit condition attracted interest at 9% on the belated deposit for the period of delay, and restoration of the appeal before the appellate tribunal was made conditional on such payment. The direction was linked to expeditious hearing and disposal of the appeal after compliance. It was also clarified that the order would not affect the separate pending civil dispute, and the amount lying in the High Court would remain there until disposal of the appeal.

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Issues: Whether, on delayed compliance with the pre-deposit condition, the assessee should be directed to pay interest for the period of delay and whether the appeal should then be restored for expeditious hearing.

Analysis: The pre-deposit of Rs. 45,00,000 was made after a substantial delay of about sixteen months. The order directed payment of interest at 9% on the deposited amount for the delayed period and linked compliance to restoration and early hearing of the appeal before the appellate tribunal. It also clarified that the direction would not affect the separate pending civil dispute and that the amount lying in the High Court would remain there until disposal of the appeal.

Conclusion: The assessee was required to pay interest for the delayed pre-deposit, and upon such payment the appeal was to be heard and disposed of expeditiously.

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