Prima facie challenge to tax levy can justify interim stay of interest recovery pending further consideration.

A revision challenging recovery of interest was granted interim protection because the materials disclosed a prima facie case on the taxability of the transaction. The note states that a deemed sale involving transfer of the right to use goods may fall outside the taxing power of a State where the agreement was executed outside the State or the transaction is otherwise outside the State's jurisdiction. On that basis, interim stay of recovery was considered appropriate pending further hearing, while the revision itself remained undecided.

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Issues: Whether the revisionist had made out a prima facie case for grant of interim stay against recovery of interest pending disposal of the revision.

Analysis: The revision raised questions on the taxability of the transaction and relied on the principle that a deemed sale involving transfer of the right to use goods cannot be taxed in the State if the agreement was executed outside the State or if the transaction is otherwise outside the State's taxing power. On the materials placed, the Court found that the revisionist had shown a prima facie case warranting interim protection.

Conclusion: Interim stay of recovery of interest was granted in favour of the revisionist pending the next date of listing.

Final Conclusion: The revision was not finally decided, but the Court granted temporary protection against recovery and directed that the matter be listed again.

Ratio Decidendi: Where a revision discloses a prima facie challenge to the levy, interim recovery may be stayed pending further consideration.

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