Pending sales tax exemption claim justified abeyance of appeals and stay of demand notices until decision.

Where a sales tax exemption application was pending before the competent authority and the eligibility certificate could not be produced for reasons beyond the petitioner's control, the appellate proceedings were kept in abeyance to avoid prejudice from a possible later grant of exemption. The authority was directed to decide the exemption application within one month, and the demand notices were stayed until that decision, with the appeals remaining stayed in the meantime.

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Issues: Whether the appellate proceedings and demand notices should be kept in abeyance until the competent authority decided the petitioner's application for sales tax exemption.

Analysis: The exemption application was stated to be pending before the competent authority, and the petitioner had not been able to produce the eligibility certificate for reasons beyond its control. A decision on the exemption claim was treated as necessary before the appeals were heard or the demand notices were enforced, so as to avoid possible prejudice if exemption were later granted.

Outcome: The General Manager, District Industries Centre, Ernakulam was directed to decide the exemption application within one month, the hearing of the appeals was kept in abeyance meanwhile, and the demand notices were stayed until such decision.

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