Pending stay application protected assessee from coercive recovery until appellate authority decides the request

Where an appeal and stay application were pending and the delay in filing the appeal had already been condoned, the High Court did not examine the penalty order on merits. It directed the appellate authority to consider and decide the stay application within a fixed time, and ordered coercive recovery proceedings to remain in abeyance until that decision was taken.

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Issues: Whether the writ petition should be disposed of by directing consideration of the pending stay application and by keeping coercive recovery proceedings in abeyance till such consideration.

Analysis: The petitioner's appeal and stay request were stated to be pending, and it was also noted that the delay in filing the appeal had been condoned. In these circumstances, the matter was not adjudicated on the merits of the penalty order. Instead, a direction was issued to the appellate authority to consider and pass orders on the stay application within a fixed time, while protecting the petitioner from coercive recovery steps until then.

Conclusion: The writ petition was disposed of with a direction to decide the stay application expeditiously, and coercive proceedings were ordered to remain in abeyance until such decision.

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