Stay petition pending in tax appeal bars coercive recovery until appellate authority decides the stay request.

Where a dealer has filed a statutory appeal against an assessment order under the Kerala Value Added Tax Act, 2003 and has also moved a stay petition, coercive recovery should not proceed before that stay request is decided. The Kerala HC emphasised procedural fairness and held that the authorities must await the appellate authority's consideration of the stay application rather than continue recovery action in the meantime. The respondent authority was directed to defer coercive steps until the stay petition is considered, with an expectation that the stay request be disposed of expeditiously.

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Issues: Whether coercive steps could be taken pending consideration of the stay petition filed along with the statutory appeal against the assessment order under the Kerala Value Added Tax Act, 2003.

Analysis: The writ petition was filed after the dealer had already availed the appellate remedy and sought stay. The Court held that procedural fairness required the authorities to await the appellate authority's decision on the stay petition before proceeding with recovery action.

Outcome: The respondent authority was directed to defer coercive steps until the stay petition was considered by the appellate authority, with an expectation of expeditious disposal of the stay petition.

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