Interim protection against tax recovery may follow where the appellate tribunal is unavailable, subject to furnishing statutory security.

Where the statutory appellate tribunal had not yet been constituted, the High Court granted interim protection against recovery proceedings pending the petitioner's appeal. It directed that, if the petitioner furnished the security contemplated by the Haryana Value Added Tax Act within the specified time, recovery would not be initiated. The respondents were required to decide whether the offered security was satisfactory, and if they rejected it, recovery would remain stayed for one further week. The petitioner was also restrained from disposing of or encumbering its immovable properties during the pendency of the appeal.

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Issues: Whether, pending constitution of the Tribunal and the petitioner's appeal, recovery proceedings could be kept in abeyance on furnishing security under the Act.

Analysis: The appeal could not proceed because the Tribunal under the Haryana Value Added Tax Act, 2003 had not yet been constituted. In these circumstances, the Court granted interim protection by directing that if the petitioner furnished the security contemplated under Section 33(5) of the Act by the specified date, recovery proceedings would not be initiated. The respondents were also directed to decide whether the security offered was satisfactory, and if the decision was adverse, recovery would remain stayed for one further week. The petitioner was restrained from disposing of or encumbering its immovable properties during the pendency of the appeal.

Conclusion: Interim relief was granted in favour of the petitioner and the writ petition was disposed of with protective directions.

Ratio Decidendi: Where an appeal cannot be effectively pursued because the appellate tribunal is not yet constituted, the Court may grant interim protection against recovery upon furnishing security contemplated by the governing statute.

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