(1) Where it appears to the appellate authority that the appellant has-
(a) not paid the amount of net tax or any other tax, penalty or interest, as the case may be, that the appellant admits to be due from him; or
(b) not enclosed a copy of the assessment order or order of determination of interest, as the case may be; or
(c) not affixed the court fee stamp showing adequate payment of fee for presenting the appeal; or
(d) has not filled the form properly including the verification, such appellate authority shall serve a notice upon the appellant directing him to show case on the date and time specified in such notice as to why the appeal presented by him shall not be refused to be entertained:
Provided that the appellate authority shall issue such notice within three days from the date of presentation of such appeal.
(2) If the appellant fails to show cause in terms of the provisions of sub-rule (1), by the date specified in the notice referred to in that sub-rule, the appellate authority shall, for reasons to be recorded, pass an order to the effect that such appeal cannot be entertained, and inform the appellant accordingly.
(3) Where the appellant pays the amount of net tax or any other tax, penalty, or interest, as the case may be, that he admits to be due from him, and produces before the appellate authority, on the date specified in the notice on such other date as may be allowed by the appellate authority, the receipted copy of challan showing payment of such amount of net tax or any other tax, penalty, or interest, such appellate authority shall, after allowing the appellant to amend the memorandum of appeal in this behalf, entertain the appeal for hearing on its merit.
(4) Where the appellant pays the fee or makes good the deficiencies of such fee by the date specified in the notice, or such other date as may be allowed by the appellate authority, by means of court fee stamp, or where he furnishes by the date specified in the notice, or such other date as may be allowed by the appellate authority, a copy of the order of assessment against which he has presented his appeal, such appellate authority shall, after allowing the appellant to amend the memorandum of appeal in this behalf, entertain the appeal for hearing on its merit.
(5) The date on which the appellant complies with the requirement referred to in clause (c) and clause (d) of sub-rule (2) of rule 138 shall, notwithstanding that he has presented the memorandum of appeal on any earlier date, be deemed to be date for presentation of his memorandum of appeal for counting the period of limitation.