Stay of tax recovery pending appeal granted where the assessee showed a serious arguable case and revenue interest remained secure

Recovery of assessed tax demand was stayed pending disposal of the statutory appeal where the assessee showed a serious arguable case on its status as an agent of the State Government for the Navi Mumbai project. The Court noted that similar contentions had been accepted in earlier assessment years and that the statutory scheme under the Maharashtra Regional and Town Planning Act, 1966 supported the assessee's case. As the Revenue's interest was otherwise secure, interim protection against recovery was granted and the appellate authority was directed to decide the appeal expeditiously, without expressing any view on the merits.

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Issues: Whether recovery of the assessed demand should be stayed pending disposal of the statutory appeal.

Analysis: The petitioner sought stay of recovery pending appeal against the assessment for assessment year 2006-07. The materials placed before the Court showed that similar contentions regarding the petitioner's status as an agent of the State Government for the Navi Mumbai project had been accepted in earlier assessment years, while the appeal for the year in question was pending. The statutory scheme under the Maharashtra Regional and Town Planning Act, 1966, including the provisions enabling development authorities to act as agents of the State Government and the vesting consequences on dissolution, supported a serious arguable case. The Court found that the issues raised merited serious consideration and that the Revenue's interest remained secure.

Conclusion: Recovery of the demand was stayed pending disposal of the appeal, and the appellate authority was directed to dispose of the appeal expeditiously.

Final Conclusion: The writ petition was disposed of by granting interim protection against recovery and by directing early hearing of the appeal, without expressing any opinion on the merits of the assessment dispute.

Ratio Decidendi: Where the assessee presents a serious arguable case and the Revenue's interest is otherwise secure, recovery pending appeal may be stayed to meet the ends of justice.

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