Interim tax appeal stay requires prima facie merits and financial hardship review before any deposit condition is imposed.

Interim stay in a statutory tax appeal should be decided on prima facie merits together with the applicant's financial hardship, and not by a mechanical insistence on deposit where that would make the appeal ineffective. The text states that the prior order did not adequately reflect these relevant considerations. It further records that the revisions were allowed in part, the disputed tax was stayed until disposal of the first appeal, and the first appellate authority was directed to decide the appeal expeditiously.

---

---

Issues: Whether, while dealing with interim stay in statutory tax appeal proceedings, the appellate forum must consider the prima facie merits of the case and the applicant's financial hardship, and whether the earlier order refusing effective stay warranted interference.

Analysis: The statutory appeal pending before the first appellate authority required consideration not only of the merits of the controversy but also of the financial condition of the applicant. An interim stay application cannot be decided mechanically, because insistence on deposit without regard to hardship may render the appeal nugatory. In the facts placed before it, the order of the Tribunal was found not to have adequately reflected these relevant considerations.

Conclusion: The revisions were allowed in part and the disputed tax was directed to remain stayed till disposal of the first appeal; the first appellate authority was also directed to decide the appeal expeditiously.

---