Conditional lifting of tax attachment and time-bound disposal of pending rectification application in business disruption dispute

Tax recovery attachment was conditionally lifted where continued coercive action would disrupt the petitioner's business, subject to payment of 10% of the tax amount for each assessment year within two weeks. The pending rectification or revision application was also required to be considered on merits and disposed of in accordance with law within two months, ensuring the statutory remedy was not left unattended. The writ petitions were thus disposed of with conditional relief against attachment and a time-bound direction for consideration of the pending application.

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Issues: (i) whether the attachment of the petitioner's properties should be raised pending consideration of the tax dispute; and (ii) whether the petitioner's application for rectification or revision under the relevant taxing provisions should be directed to be considered on merits within a fixed time.

Issue (i): whether the attachment of the petitioner's properties should be raised pending consideration of the tax dispute

Analysis: The tax demand had already been raised, no appeal had been preferred, and distraint orders had been passed attaching the petitioner's property. At the same time, continued attachment would affect the running of the business. The relief was therefore shaped as a conditional measure balancing recovery with the need to avoid undue disruption to business activity.

Conclusion: The attachment was directed to be raised on condition that the petitioner pays 10% of the tax amount for each assessment year within two weeks.

Issue (ii): whether the petitioner's application for rectification or revision under the relevant taxing provisions should be directed to be considered on merits within a fixed time

Analysis: Since the petitioner had already filed an application invoking the statutory remedy, the respondent was required to consider it in accordance with law rather than leaving it unattended. A time-bound direction was necessary to ensure decision on the pending application.

Conclusion: The respondent was directed to consider the application on merits and pass orders in accordance with law within two months thereafter.

Final Conclusion: The writ petitions were disposed of with conditional relief against coercive attachment and with a direction for expeditious statutory consideration of the pending application.

Ratio Decidendi: In tax recovery matters, attachment may be conditionally lifted where continued coercive action would unduly impede business, while a pending statutory application must be decided expeditiously on merits in accordance with law.

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