Instalment payment protection against tax recovery was granted pending appeal after the revenue raised no objection.

A recovery order was set aside and instalment-based payment was permitted pending appeal because the assessee proposed a concrete payment schedule and the revenue raised no objection. The court allowed payment in two instalments and protected the assessee from being treated as in default for the balance amount during the pendency of the appeal, subject to compliance with that schedule.

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Issues: Whether the impugned order directing immediate tax recovery should be set aside and whether the petitioner should be permitted to pay the tax demand in instalments without being treated as an assessee in default until disposal of the pending appeal.

Analysis: The Court recorded the petitioner's proposal to pay Rs.1 crore by 31.3.2011 and another Rs.1 crore by 30.4.2011, and noted that the respondents had no objection. On that basis, the Court granted the requested relief by setting aside the impugned order and allowing payment in the stated instalments, with protection against being treated as an assessee in default for the balance amount during pendency of the appeal.

Conclusion: The relief was granted in favour of the petitioner, the impugned order was set aside, and the petitioner was protected from default consequences subject to compliance with the instalment schedule.

Ratio Decidendi: Where the revenue does not object, the Court may set aside a recovery order and grant instalment-based payment protection pending appeal, with corresponding relief against default consequences upon compliance.

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