Statutory bar on stay pending reference prevented the Sales Tax Tribunal from suspending recovery of assessed tax and penalty.

The Bombay HC held that the Sales Tax Tribunal had no jurisdiction to stay recovery of assessed tax and penalty while a reference application under section 61 was pending, because section 61(6) expressly barred any stay of payment due under the Tribunal's order. Inherent or incidental powers could not be used to override that statutory prohibition, and the reference proceedings did not preserve any residual power to grant stay. The refusal of stay was therefore justified, and the writ petition failed.

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Issues: Whether the Sales Tax Tribunal had jurisdiction to grant stay of recovery of the assessed tax and penalty during the pendency of an application for reference under section 61 of the Bombay Sales Tax Act, 1959.

Analysis: The text of section 61(6) expressly provided that payment of the amount of tax due in accordance with the Tribunal's order shall not be stayed pending disposal of the application for reference or any reference made in consequence thereof. The provision was materially different from section 265 of the Income-tax Act, which only continued the liability to pay tax notwithstanding reference and did not contain an express prohibition against stay. The Court held that where the statute specifically forbids stay, inherent powers cannot be used to defeat that prohibition. The pendency of a reference application, therefore, did not preserve any power in the Tribunal to grant stay contrary to the statute.

Conclusion: The Tribunal had no jurisdiction to grant stay, and refusal of the stay application was justified.

Final Conclusion: The writ petition failed because the Tribunal's order was in accordance with the express statutory bar against stay during the reference proceedings.

Ratio Decidendi: Inherent or incidental powers cannot be exercised to grant stay where the governing statute expressly prohibits stay pending reference.

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