Effect of an unstayed writ order: pending special leave petition did not justify refusing sales tax registration cancellation and refund.

A pending special leave petition did not suspend the effect of an earlier High Court writ order quashing sales tax registration and holding the petitioners not liable to be registered or taxed. In the absence of any stay order from the Supreme Court, the respondents were bound to comply with that earlier order and could not refuse cancellation of the registration or consequential refund merely because further proceedings were pending. The petitioners were therefore entitled to cancellation of the sales tax registration and refund of the tax deposited, with interest if the refund was not made within the time directed.

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Issues: Whether the respondents could refuse cancellation of the sales tax registration and refund of tax merely because a special leave petition against the earlier writ order was pending before the Supreme Court.

Analysis: The earlier writ order quashing the registration and holding the petitioners not liable to be registered or taxed had attained effect and had to be complied with unless its operation was stayed by a competent court. No order of stay from the Supreme Court was shown. Mere filing of a special leave petition did not suspend or nullify the operation of the High Court's earlier order. The respondents were therefore bound to implement that order and grant the consequential relief sought by the petitioners.

Conclusion: The petitioners were entitled to cancellation of the sales tax registration and refund of the tax deposited, with interest if the amount was not refunded within the time directed.

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