Coercive revenue recovery cannot proceed on a disputed sales tax demand while statutory appeal remains pending.

Coercive revenue recovery on a disputed sales tax demand was treated as unsustainable while the assessment remained under challenge in statutory appeal. The Madras HC followed an earlier Division Bench ruling and held that, where the underlying liability is sub judice before the Tribunal, recovery under sections 27 and 36 of the Tamil Nadu Revenue Recovery Act, 1864 should not be pursued on the same demand. The pendency of the appeal, even without a stay, was sufficient on these facts to prevent coercive action, and the writ petition succeeded with the recovery proceedings quashed.

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Issues: Whether revenue recovery proceedings could be initiated and sustained while the assessee's liability was under challenge in appeal before the Tribunal and no stay had been obtained.

Analysis: The liability arose from sales tax assessment proceedings and the impugned recovery action was taken under sections 27 and 36 of the Tamil Nadu Revenue Recovery Act, 1864. The assessment was under active challenge before the appellate forum, and the Court followed an earlier Division Bench ruling which had held that recovery action should not be pursued when the demand itself remains sub judice. The pendency of the appeal was treated as sufficient to prevent coercive recovery in the facts of the case.

Conclusion: Revenue recovery proceedings were held to be unsustainable and were quashed; the issue was decided in favour of the petitioner.

Final Conclusion: Coercive recovery of the disputed sales tax demand could not be continued during the pendency of the statutory appeal, and the writ petition succeeded.

Ratio Decidendi: Where the underlying tax liability is under active appellate challenge, coercive revenue recovery proceedings should not be pursued against the assessee on the same demand.

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