Refund treated as pre-deposit for revival of first appeals, with coercive recovery stayed until merits are decided.

Refund money retained by the Revenue was treated as sufficient pre-deposit for revival of the assessee's first appeals because the amount held in credit exceeded the sum required by the Tribunal. The assessee was permitted to apply to the first appellate authority for adjustment of the available refund as pre-deposit, and the authority was directed to revive the appeals and decide them on merits after treating the specified amount as pre-deposit. Pending that decision, coercive recovery of the tax demand was ordered to remain stayed.

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Issues: Whether the amount of refund lying with the Revenue could be treated as pre-deposit for the purpose of reviving and hearing the assessee's first appeals, and whether coercive recovery of the tax demand should remain stayed meanwhile.

Analysis: The refund amount retained by the department was found to be more than the sum required by the Tribunal as pre-deposit. In these circumstances, the assessee was permitted to apply before the first appellate authority to treat the amount already lying in its credit as pre-deposit. The first appellate authority was directed to revive the first appeals and decide them on merits after treating about Rs. 20,00,000 as pre-deposit. Pending such decision, coercive recovery of the tax demand was directed not to be undertaken.

Conclusion: The refund amount was allowed to be treated as pre-deposit for revival of the first appeals, and coercive recovery was stayed until the appeals were finally decided.

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