SC Grants Stay on Coercive Tax Recovery; Assessments Allowed but Recovery Actions Halted Pending Appeals.

The SC granted a stay on the judgment referenced by the Petitioner, preventing coercive tax recovery. The interim order was modified, allowing Respondents to proceed with assessments but prohibiting coercive recovery actions. The writ petition was adjourned sine die, with parties permitted to request a listing post-SC decision in related appeals.

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Issues involved: Stay of judgment, coercive steps for recovery of tax demand, modification of interim order, adjournment of writ petition.

Stay of judgment: The Supreme Court granted leave and stay of the judgment relied upon by the Petitioner in Ground C of the present petition in Special Leave to Appeal (C) Nos. 21732-33/2017. The Department submitted that no coercive steps would be taken for recovering the tax due.

Coercive steps for recovery of tax demand: The interim order passed by the Court on 29th May 2017 was modified to allow the Respondents to proceed with the assessment but not to take any coercive steps for recovery of any demand pursuant thereto.

Modification of interim order: The Court modified the interim order by permitting the Respondents to proceed with the assessment but refraining from taking any coercive steps for recovery of the tax demand.

Adjournment of writ petition: The writ petition was adjourned sine die with liberty to the parties to mention it for listing after the decision of the Supreme Court in the appeals arising from Special Leave to Appeal (C) Nos. 21732-33/2017.

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