Subordinate taxing authority cannot nullify an appellate stay unilaterally; statutory hierarchy must be followed.

A subordinate taxing authority cannot ignore or nullify a subsisting stay granted by an appellate authority under the sales tax statute. The assessing authority was required to comply with the appellate order within the statutory hierarchy and could not treat it as illegal or void on its own. Any challenge to the stay had to be pursued through the prescribed statutory remedies, not by unilateral administrative action. The impugned proceedings were therefore an arbitrary exercise of power and beyond jurisdiction, and the stay order remained operative.

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Issues: Whether the assessing authority could ignore and set aside the stay granted by the appellate authority under the sales tax statute, and whether such action was without jurisdiction and unsustainable.

Analysis: The appellate authority had granted stay in exercise of its statutory powers, and the assessing authority was bound to act in accordance with that order within the statutory hierarchy. The assessing authority could not declare the appellate order illegal or null and void on its own, because subordinate authorities must follow orders of superior appellate authorities unless stayed or set aside in appropriate proceedings. If the Revenue had any grievance, the proper course was to pursue statutory remedies and not to overreach the appellate order. The impugned action therefore amounted to an arbitrary exercise of power and a transgression of jurisdiction.

Conclusion: The assessing authority had no authority to nullify the stay order passed by the appellate authority, and the impugned proceedings were liable to be quashed.

Final Conclusion: The writ petition succeeded and the stay order granted by the appellate authority remained operative.

Ratio Decidendi: A subordinate taxing authority cannot disregard or nullify a subsisting order of the appellate authority and must follow it unless it is set aside through the statutory process.

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