Coercive tax recovery restrained during subsisting appeal period where appellate remedy remained open.

Coercive recovery of sales tax and penalty was treated as premature while the statutory period for filing the next appeal against the assessment orders was still running. The court noted that the assessee had already pursued the appellate remedy and had recently received the first appellate order, so the appellate scheme remained open and recovery action was not warranted during the subsisting limitation period. It further observed that the assessee could seek interim protection from the appellate authority before the appeal time expired. Coercive recovery was therefore restrained until expiry of the appeal period.

---

---

Issues: Whether coercive steps for recovery of sales tax and penalty could be taken against the assessee while the appeal period against the assessment orders was still running.

Analysis: The assessee had already pursued the appellate remedy and the orders of the first appellate authority had been received only recently, leaving the statutory period for filing further appeal still open. In such circumstances, the statutory scheme provided a complete appellate mechanism, and recovery action during the subsisting limitation period was not warranted. The Court also noted that the assessee was at liberty to seek interim protection from the appellate authority before the appeal period expired.

Conclusion: Coercive recovery was restrained till the appeal time expired, in favour of the assessee.

---