Court modifies conditions for disputed tax payment, firm must comply or face cancellation.

The court modified the conditions imposed by the appellate authority on a petitioner firm regarding the payment of disputed tax amounts. The firm was directed to pay specific amounts for certain cases within a specified period and execute a personal bond for the remaining tax and penalty amounts. Failure to comply would result in cancellation of the modification, reverting to the original order. The court allowed the Writ Petitions without costs, providing clear directives for payment requirements and bond execution to maintain the stay on tax payment.

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Issues:
Conditions imposed by the appellate authority in respect of stay granted in favor of the petitioner firm.

Analysis:
The petitioner firm challenged the conditions imposed by the appellate authority regarding the payment of the disputed tax amount. The firm had already paid 25% of the tax at the time of appeal and a varying percentage of the amount demanded in different cases. The appellate authority required the firm to provide a Security Bond or Bank Guarantee for the balance amount, which the firm was unable to do. The firm argued that the demanded amount was disputed and should be decided by the relevant authority. The Additional Government Pleader contended that safeguarding the revenue was crucial, supporting the appellate authority's decision.

The court considered previous judgments where personal bonds were accepted as a condition for continuing the stay on tax payment. Referring to these precedents, the court modified the conditions imposed by the appellate authority. The court directed the petitioner firm to pay specific amounts for certain cases within a specified period, instead of providing a Bank Guarantee or Security Bond. Additionally, the firm was required to execute a personal bond for the remaining tax and penalty amounts within a set timeframe. The court warned that failure to comply with these conditions would result in the cancellation of the modification granted by the court, reverting to the appellate authority's original order.

In conclusion, the court allowed the Writ Petitions to the extent indicated in the judgment, without imposing any costs. The judgment provided a clear directive on the payment requirements and bond execution for the petitioner firm, ensuring compliance with the modified conditions to maintain the stay on tax payment.

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