Conditional stay against tax recovery pending appeal, with deposit terms balancing assessee hardship and revenue interests.

Where a statutory second appeal is pending and the appellate authority cannot grant interim protection, the writ court may restrain coercive recovery of assessed tax and penalty on equitable terms. The court balanced the assessee's hardship against the revenue's interest by making interim relief conditional on partial deposit of tax and penalty within the stipulated time. It also directed expeditious disposal of the appeal within four months, so the petitioner obtained conditional protection against recovery pending appeal.

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Issues: Whether recovery of assessed tax and penalty should be stayed pending disposal of the second appeal, and whether such protection could be granted subject to deposit conditions.

Analysis: The second appeal was pending before the appellate tribunal, and the authority had no power to grant an interim stay. In exercise of writ jurisdiction, the Court found it just to prevent coercive recovery during pendency of the appeal, while balancing the revenue's interest by directing partial deposits of tax and penalty within stipulated time. The Court also directed expeditious disposal of the appeal within four months.

Conclusion: Coercive recovery was restrained pending disposal of the appeal, subject to the prescribed deposit conditions, and the petitioner obtained conditional interim protection.

Ratio Decidendi: Where a statutory appeal is pending and the appellate authority cannot grant interim protection, the writ court may restrain coercive recovery on equitable terms, including conditional deposit, to balance hardship to the assessee and the interests of revenue.

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