Conditional stay against tax recovery granted while pending appeal must be heard on merits after deposit requirement is met

Coercive recovery of assessed tax was held inappropriate while the statutory appeal remained pending, and the Court considered it unnecessary to remand the matter to the Tribunal. It directed that the appeal be entertained and decided on merits if the petitioner deposited one lakh rupees within one month and produced proof before the appellate authority. The relief was thus conditional, balancing protection against recovery with the requirement of deposit before the pending appeal could proceed on merits.

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Issues: Whether recovery of the assessed tax could be restrained during pendency of the appeal, and whether the pending appeal should be heard on merits subject to deposit of a specified amount.

Analysis: The petition challenged coercive recovery steps while the statutory appeal remained pending. The Court found it unjust to continue recovery while the appeal was awaiting adjudication, and considered that no useful purpose would be served by remitting the matter to the Tribunal. It therefore directed that the appeal be entertained and decided on merits if the petitioner deposited one lakh rupees within one month and produced proof before the appellate authority.

Conclusion: The petitioner was granted conditional relief by way of a direction to have its appeal heard on merits upon deposit of one lakh rupees, and the writ petition was disposed of accordingly.

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