Revisional modification of interim tax stay: limited protection granted pending appeal, with deposit and security conditions imposed.

In revisional jurisdiction, an interim tax recovery order may be modified where a balanced arrangement is needed to protect both the assessee and the revenue pending appeal. The Court found the Tribunal's partial stay insufficient on the facts, and granted limited further protection by directing deposit of 10% of the disputed demand, keeping the balance in abeyance till disposal of the appeals, and requiring security for the stayed amount. The appellate authority was also directed to decide the appeals expeditiously.

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Issues: Whether the revisional court should interfere with the Tribunal's interim order and grant further protection against recovery of the disputed tax demand pending disposal of the statutory appeals.

Analysis: The revision arose from an order granting only partial stay against a large tax demand. The Court considered the peculiar facts, including the pendency of the appeals and the need for balancing protection of the assessee with safeguarding the revenue interest. It therefore modified the Tribunal's order by directing deposit of 10% of the demanded tax within the stipulated time, keeping the balance in abeyance till disposal of the appeal, and requiring security for the stayed amount.

Conclusion: The revision was allowed to the extent of modifying the interim stay conditions and granting limited protection against recovery pending appeal.

Final Conclusion: The assessee obtained partial relief in the form of revised interim protection, while the appellate authority was directed to decide the appeals expeditiously in accordance with law.

Ratio Decidendi: In revisional jurisdiction, interim tax recovery orders may be modified to grant limited stay where a balanced arrangement is necessary to protect both the assessee's interests and the revenue pending final adjudication.

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