Tax exemption proceedings stayed pending final decision, with coercive action kept in abeyance until time-bound disposal.

The writ petition concerned tax exemption proceedings under a State order and the petitioner's request for expeditious finalisation and interim protection from coercive action. The HC noted the pending consideration before the State Level Committee and directed the first respondent to complete the proceedings as expeditiously as possible, and in any event within three months of receipt of the judgment. It further ordered that the pending appeals would abide by the outcome of that decision and that coercive steps should remain in abeyance until final orders were passed.

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Issues: Whether the petitioner was entitled to a direction for expeditious finalisation of the proceedings concerning tax exemption claimed under the relevant State order and for interim protection against coercive action pending such finalisation.

Analysis: The petition concerned an asserted entitlement to exemption from tax liability and a complaint of prolonged inaction by the authority in completing the pending proceedings. Noting the earlier directions issued in connected proceedings and the statement that the matter would be considered by the State Level Committee, the Court directed the first respondent to finalise the proceedings as expeditiously as possible, and in any event within three months from receipt of the judgment. The Court further directed that the finalisation of the pending appeals would abide by the result of such decision and that coercive steps should remain in abeyance until final orders were passed.

Conclusion: The writ petition was allowed to the extent of issuing directions for time-bound finalisation of the exemption proceedings and for keeping coercive measures in abeyance pending such decision, which was substantially in favour of the petitioner.

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