Temporary injunction against tax recovery refused where statutory remedies existed and no irreparable injury was shown.

A temporary injunction restraining recovery of assessed sales tax was unsustainable where statutory appellate and revisional remedies were available and the assessee failed to show prima facie entitlement, balance of convenience, or irreparable injury under Order XXXIX Rule 1 CPC. The assessed demand arose under the Orissa Sales Tax Act, 1947, which provided a statutory mechanism for appeal, revision, and stay. The Court held that tax recovery is not ordinarily to be restrained, since delay in collection may prejudice public administration and the alleged injury was not shown to be incapable of repair. The injunction was therefore set aside and restraint against recovery was refused.

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Issues: Whether a temporary injunction restraining recovery of assessed sales tax could be sustained when statutory appellate and revisional remedies were available and the plaintiff had not established irreparable injury or balance of convenience in his favour.

Analysis: The claim for injunction was examined on the settled requirements under Order XXXIX, Rule 1 of the Code of Civil Procedure, 1908, namely prima facie case, balance of convenience, and irreparable injury. The assessed tax demand arose under the Orissa Sales Tax Act, 1947, and the Act provided an appellate structure with power to seek stay during the pendency of appeal and revision. The injury complained of was held not to be irreparable because the plaintiff had not availed the statutory remedies and had not placed material to show that recovery of the quantified demand would cause injury incapable of repair. The Court also held that tax collection is ordinarily not to be stayed because delay in realisation may prejudice public administration, whereas recovery from the assessee would only shift the burden to the person on whom liability had been imposed. The trial court's approach in granting injunction was therefore found unsustainable.

Conclusion: The temporary injunction could not be maintained and the plaintiff was not entitled to restraint against recovery of the assessed tax.

Ratio Decidendi: In matters of tax recovery, injunction will not ordinarily be granted unless the assessee shows a strong prima facie case, real irreparable injury, and balance of convenience in his favour, especially where efficacious statutory remedies exist.

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