Stay of sales tax recovery granted pending appeal, subject to proof of Central sales tax payment for the same transaction.

Coercive recovery of M.P. sales tax and penalty was stayed pending the statutory appeal because the assessees had already invoked the appellate remedy and claimed that the same transaction had borne Central sales tax in Tamil Nadu. The protection was made conditional on the assessees satisfying the authorities that Central sales tax had in fact been paid for the relevant transaction. The stay was extended to the penalty also, and it would continue on the same terms if a further appeal was filed before the Board of Revenue with all necessary parties joined, until that appeal was decided.

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Issues: Whether collection of M.P. sales tax and penalty should be stayed pending disposal of the statutory appeal in view of the appellants' claim that the same transaction had already suffered Central sales tax in Tamil Nadu.

Analysis: The Court noted that the appellants had already preferred an appeal before the appellate Commissioner. Pending that appeal, and subject to the appellants satisfying the concerned authorities that Central sales tax had been paid in Tamil Nadu for the same transaction, the Court considered it just and proper to protect the appellants from coercive recovery. The stay was extended to penalty as well, and if a further appeal were filed before the Board of Revenue with all necessary parties joined, the stay would continue on the same terms until that appeal was decided.

Conclusion: Collection of the M.P. sales tax and the penalty was stayed pending the statutory appeal, subject to proof of payment of Central sales tax in Tamil Nadu, with the appeal disposed of by issuing directions for expeditious adjudication.

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