Judicial discretion in stay petitions requires reasoned consideration of relevant factors; mechanical refusal of deferment is invalid.

Section 31(5) of the Tamil Nadu General Sales Tax Act, 1959 does not create an automatic stay on filing an appeal, but it requires the appellate authority to decide a stay request judicially and by a speaking order. The authority must consider relevant factors such as prima facie case, tax burden, hardship, security offered, and impact on public revenue; a mechanical refusal without reasons is invalid. The impugned stay orders were quashed, and the matters were remitted for fresh consideration with interim protection against recovery until reconsideration.

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Issues: Whether the appellate authority, while considering a stay petition under section 31(5) of the Tamil Nadu General Sales Tax Act, 1959, was required to exercise discretion judicially and pass a speaking order after considering relevant factors.

Analysis: Section 31(5) does not confer an automatic right to stay on mere filing of an appeal, but it does require the Appellate Assistant Commissioner to consider the request for deferment of tax pending appeal on relevant grounds. The authority must apply its mind to matters such as prima facie case, the amount involved, the assessee's capacity to pay, hardship, the nature of security offered, and the impact on public revenue. A mechanical refusal based only on a prior general principle, without reasons, does not amount to a proper exercise of discretion. Once discretion is exercised by a reasoned order, interference is normally unwarranted.

Conclusion: The appellate authority was bound to pass a reasoned order on the stay applications, and the impugned mechanical orders could not stand.

Final Conclusion: The writ petitions succeeded to the extent that the stay orders were quashed and the matters were sent back for fresh consideration with interim protection against recovery until such reconsideration.

Ratio Decidendi: Discretionary orders on stay under section 31(5) of the Tamil Nadu General Sales Tax Act, 1959 must be made judicially on relevant considerations and supported by reasons; a mechanical refusal is invalid.

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