Implied appellate stay power protects tax appeals from coercive recovery where statutory discretion permits non-payment relief.

An appellate authority under section 20(5) of the Punjab General Sales Tax Act, 1948 has implied and ancillary power to stay recovery of tax during the pendency of an appeal. Although the right of appeal is conditioned on payment of tax or penalty, the proviso permits the appeal to be entertained despite non-payment or part-payment where the dealer cannot pay, and that discretion necessarily includes power to prevent the appeal from being defeated by coercive recovery. The stated administrative limit on interim stays did not negate the authority's jurisdiction. The challenge to the stay power was therefore rejected.

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Issues: Whether an appellate authority under section 20(5) of the Punjab General Sales Tax Act, 1948 has power, express or implied, to stay recovery of tax during the pendency of an appeal.

Analysis: The right of appeal under section 20(5) is conditioned by payment of tax or penalty, but the proviso authorises the appellate authority, for recorded reasons, to entertain the appeal despite non-payment or part-payment where the dealer is unable to pay. That statutory discretion necessarily includes power to protect the appeal from being defeated by coercive recovery, and the power to stay recovery is also incidental or ancillary to appellate jurisdiction. The recovery action here was justified on an asserted administrative limit on interim stays, not on absence of jurisdiction in the appellate authority, and that did not affect the existence of the power.

Conclusion: The appellate authority does have implied and ancillary power to stay recovery of tax during the pendency of the appeal, and the challenge to that power fails.

Final Conclusion: The appeal was rejected on the issue of stay power, leaving intact the order in favour of the assessee.

Ratio Decidendi: An appellate authority vested with appellate jurisdiction and statutory discretion to entertain an appeal despite non-payment of tax has implied authority to grant stay of recovery as an incidental and ancillary power necessary to make the appeal effective.

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