Court upholds bank account freeze for tax recovery, directs 10% deposit, emphasizes appeal process, protects interests.

The court upheld the freezing of bank accounts for tax recovery, emphasizing the necessity of such measures despite appeal delays. The petitioner was directed to deposit 10% of the tax amount and follow specified appeal procedures while recovery from frozen accounts was temporarily halted to safeguard interests during the appeal process. The court refrained from interfering with the jurisdiction of the second respondent and highlighted the importance of addressing tax recovery concerns pending appeal outcomes.

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Issues:
1. Challenge to coercive steps for tax realization
2. Stay of coercive proceedings and freezing of bank accounts
3. Maintainability of writ prayers
4. Validity of freezing bank accounts for tax recovery
5. Jurisdiction of the second respondent in appeals
6. Disposition of the writ petition

Analysis:
1. The petitioner filed appeals with delays of 937 and 555 days against tax orders and sought stay on coercive proceedings. The writ petition challenged the coercive steps taken by freezing bank accounts for tax realization.

2. The petitioner's counsel argued for a stay on further proceedings related to frozen bank accounts, suggesting depositing 10% of the tax demanded for consideration. The Standing Counsel opposed, citing the finality of assessment orders and potential prejudice to the Department if accounts are unfrozen.

3. The Standing Counsel contended that the writ prayers were not maintainable as they sought relief from execution of final orders. The freezing of accounts was deemed necessary for legitimate tax recovery, pending appeal delays notwithstanding.

4. The judgment noted the statutory nature of the appeals before the second respondent and refrained from interfering with their jurisdiction. The petitioner's offer to deposit 10% of the tax amount was seen as a step towards addressing the situation.

5. The Court emphasized that all issues were before the second respondent and refrained from guiding their decision. The frozen bank accounts raised concerns about the potential withdrawal of the entire tax amount by the tax authority.

6. Considering the balance of convenience and the need for appeal remedy, the Court disposed of the petition by directing the petitioner to deposit 10% of the tax amount and follow specific steps for appeal consideration, while also instructing a temporary halt to recovery from frozen accounts. The judgment aimed to preserve interests during appeal proceedings.

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