Interim tax stay modified: further protection granted subject to partial deposit and security pending appeal.

At the interim stage, the High Court modified the Tribunal's stay order and protected the assessee against recovery of the disputed tax demand. It noted the pending appeal and the earlier stay granted by the appellate authority and the Tribunal, and considered the assessment dispute arising from rejection of statutory forms and export proof for alleged delay. Further stay was granted on conditions requiring deposit of 10% of the demanded tax and furnishing security for the stayed amount. The revision was partly allowed.

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Issues: Whether the Tribunal's interim stay order required modification and whether further stay of the disputed tax demand could be granted subject to deposit and security conditions.

Analysis: The revision arose from an assessment in which the disputed demand had been substantially founded on rejection of statutory forms and proof of export for alleged delay. The Court confined itself to the interim stage and considered the peculiar facts, including the pendency of the appeal and the earlier stay granted by the appellate authority and the Tribunal. On that basis, it found it to modify the Tribunal's order and protect the assessee by granting further stay on specified terms.

Conclusion: The interim order was modified, and further stay was granted subject to deposit of 10 per cent of the demanded tax and furnishing of security for the stayed amount. The revision was partly allowed.

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