Court quashes Tribunal order, grants unconditional stay on tax demand. Upholds petitioner's right for relief.

The Court quashed the Gujarat Value Added Tax Tribunal's order directing payment of 15% of the demand during the pendency of the revision application. The petitioner successfully challenged the order under Article 226 of the Constitution of India, citing a previous decision by the Tribunal and Division Bench of the High Court. The Court granted the petitioner unconditional stay of the entire demand, emphasizing consistency in decisions and the right to seek such relief during legal proceedings. This case underscores the fair and just approach to resolving tax-related disputes during legal proceedings.

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Issues involved:
Challenge to impugned order of Gujarat Value Added Tax Tribunal directing payment of 15% of demand during pendency of revision application.

Analysis:
The petitioner filed a petition under Article 226 of the Constitution of India to challenge the impugned order of the Gujarat Value Added Tax Tribunal. The Tribunal had directed the petitioner to pay 15% of the demand and stay the rest of the recovery during the pendency and final disposal of the revision application. The petitioner argued that the issue was already settled by a previous decision of the Tribunal in another case, which was later confirmed by the Division Bench of the High Court. Therefore, the petitioner requested unconditional stay of the demand. The Court agreed with the petitioner and held that the impugned order directing the payment of 15% of the demand cannot be sustained. The Court quashed the order and granted the petitioner unconditional stay of the entire demand during the pendency and final disposal of the revision application before the Tribunal.

This judgment highlights the importance of consistency in decisions and the impact of previous rulings on similar cases. It also emphasizes the right of a petitioner to seek unconditional stay of demand during the legal proceedings. The Court's decision to quash the impugned order and grant unconditional stay demonstrates a fair and just approach to resolving disputes related to tax demands during legal proceedings.

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