Stay on tax demand may be extended when appeal delay is not attributable to the assessee.

Where the delay in disposal of an appeal is not attributable to the assessee, interim stay on recovery of the demand may be extended if the assessee does not itself cause further delay. On that basis, the conditions for continuation of stay were treated as satisfied, and the stay on demand was prolonged for six months or until disposal of the appeal, whichever was earlier, subject to the assessee not delaying the appeal.

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Issues: Whether the stay on recovery of the demand was liable to be extended on the ground that the delay in disposal of the appeal was not attributable to the assessee.

Analysis: The application was supported by the hearing record and the Revenue did not controvert the assertion that the delay in disposal of the appeal was not attributable to the assessee. On that basis, the conditions for continuation of the stay were treated as satisfied.

Conclusion: The stay was extended for six months or until disposal of the appeal, whichever was earlier, with the condition that the assessee should not delay the appeal.

Final Conclusion: The request for continuation of interim protection was accepted and the stay on demand was prolonged.

Ratio Decidendi: Where the delay in disposal of the appeal is not attributable to the assessee, the stay on recovery may be extended.

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