Sales tax recovery stayed pending review on section 4-A eligibility, while attachment of property was allowed for dues recovery.

Recovery by sale of the petitioner's property was to remain in abeyance until the pending review application under section 4-A of the U.P. Sales Tax Act was finally decided, because liability to sales tax depended on that determination. The Court considered it necessary to protect the petitioner from irreversible sale proceedings while the eligibility issue remained unresolved. At the same time, the respondents were permitted to attach the petitioner's property for recovery of the impugned dues, preserving the revenue's security pending the review outcome.

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Issues: Whether recovery of sales tax demand could proceed before disposal of the review application relating to eligibility under section 4-A of the U.P. Sales Tax Act, and whether the petitioner's properties could be sold meanwhile.

Analysis: The review application seeking a decision under section 4-A had remained pending, and the petitioner's liability to pay sales tax was stated to depend upon its outcome. In these circumstances, the Court considered that the ends of justice required protection against sale of the petitioner's property until the Divisional Level Committee finally decided the review application. At the same time, the Court preserved the respondents' right to attach the petitioner's property for recovery of the impugned dues.

Conclusion: Recovery by sale was restrained until disposal of the review application, while attachment for recovery was permitted.

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