Stay of tax demand recovery granted conditionally after substantial payment, with balance recovery suspended pending appeal.

Stay of recovery of the balance tax demand was granted pending disposal of the appeal because the assessee had already paid more than 50% of the demand. Balancing hardship against revenue protection, the Tribunal directed an additional partial payment and stayed recovery of the remaining demand for a limited period or until the appeal is decided, whichever occurs earlier. The stay was therefore made conditional on further payment and was not an unconditional suspension of demand recovery.

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Issues: Whether stay of recovery of the outstanding tax demand pending disposal of the appeal should be granted, having regard to the amount already paid by the assessee and the balance demand remaining.

Analysis: The assessee had already paid more than fifty per cent of the demand raised. The remaining demand was substantial, but the Tribunal balanced the assessee's hardship against the need to safeguard the revenue. To protect the revenue interest, a further partial payment was directed and recovery of the balance was stayed for a limited period or until disposal of the appeal, whichever occurred earlier.

Conclusion: Stay of the balance demand was granted, subject to payment of Rs. 50 lakhs by the assessee, and the application was allowed.

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