Interim stay on commercial tax recovery granted subject to adequate security, with cash or bank guarantee expressly not required.

Pending consideration of a writ petition challenging a commercial tax recovery under the Uttar Pradesh Value Added Tax Act, 2008, the HC granted interim protection against recovery subject to the petitioner furnishing adequate security. The Court noted the contention that conflicting single-judge decisions had made the statutory appellate remedy illusory, and it directed notice with time for counter and rejoinder affidavits. The protection was conditioned so that security need not be given in cash or by bank guarantee, and default would automatically vacate the stay.

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Issues: Whether, pending consideration of the writ petition, recovery pursuant to the impugned commercial tax order should be stayed in view of the asserted conflict of decisions under the Uttar Pradesh Value Added Tax Act, 2008.

Analysis: The petition was taken up at the admission stage. Notice was directed to be issued and time was granted for filing counter affidavit and rejoinder affidavit. The Court also noticed the petitioner's contention that conflicting single-judge decisions had rendered the statutory appellate remedy under the Uttar Pradesh Value Added Tax Act, 2008 illusory. As an interim measure, protection against recovery was granted on furnishing adequate security, while expressly directing that security was not to be insisted upon in cash or bank guarantee and that default would automatically vacate the stay.

Outcome: Interim protection against recovery was granted subject to furnishing adequate security, and the matter was left pending for further consideration.

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