Interim stay in revision proceedings ends once the revision is held not maintainable; continuation beyond dismissal is invalid.

A revision petition found to be not maintainable could not support continuation of an interim stay of recovery proceedings after dismissal. The High Court held that the statutory power to stay recovery under section 14(5) of the Rajasthan Sales Tax Act, 1954 operated only during the pendency of a maintainable revision and ceased once the revision was dismissed as not maintainable. The direction extending the stay until disposal of a possible appeal was therefore invalid, as the authority lacked jurisdiction to keep the stay alive beyond the life of the revision petition. The reference was answered against the assessee and in favour of the Revenue.

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Issues: Whether, after holding a revision petition to be not maintainable, the authority could direct continuation of the interim stay of recovery proceedings till disposal of a possible appeal.

Analysis: The revision petition was found to be not maintainable, and the respondent ought to have pursued an appeal against the original order. Once the revision was being dismissed, the authority had no jurisdiction to extend the interim stay beyond the life of the revision petition. The statutory power to stay recovery under section 14(5) of the Rajasthan Sales Tax Act, 1954 was confined to the pendency of the revision petition and could not support continuation of the stay after dismissal for non-maintainability.

Conclusion: The direction continuing the stay of recovery proceedings till disposal of the appeal was not valid and the question was answered in the negative, in favour of the Revenue.

Final Conclusion: The reference was answered against the assessee, and the order extending the stay after dismissal of the revision could not be sustained.

Ratio Decidendi: The power to grant or continue an interim stay under the relevant revision provision exists only during the pendency of a maintainable revision and ceases when the revision is dismissed as not maintainable.

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