Interim restraint on cess collection refused where refund remedy and public interest outweighed continued injunction against revenue recovery.
Interim restraint on collection of cess under the Assam Agricultural Produce Market Act was declined after the Court applied the settled test for injunctions against revenue, requiring consideration of prima facie case, balance of convenience, irreparable injury, and public interest. The Court found that the statutory scheme allowed refund if the petitioner ultimately succeeded, which reduced the need to continue the restraint. On that basis, the authorities were permitted to continue cess collection pending the writ petition, with liberty to refund any amount later found unlawfully collected.
Issues: Whether the interim order restraining collection of cess under Section 21 of the Assam Agricultural Produce Market Act, 1972 should be extended.
Analysis: The interim restraint was examined against the background of the statutory power to levy and collect cess and the existing judicial and administrative developments relating to such levy. The Court also applied the settled considerations governing interim orders against revenue, including the need to evaluate not merely prima facie case but also balance of convenience, irreparable injury, and public interest. It was noted that the statutory scheme provided for refund if the petitioner ultimately succeeded, which reduced the need to continue the restraint order.
Conclusion: The interim order was not extended and the prayer for continuation of restraint on cess collection was declined.
Final Conclusion: The respondent authorities were left free to continue collection of cess pending the writ petition, with liberty to refund any amount found unlawfully collected if the petitioner ultimately succeeds.
Ratio Decidendi: Interim restraint against collection of revenue should not be continued merely on a prima facie case when the statutory scheme provides for refund and the balance of convenience and public interest do not justify interference.
TaxTMI 
AI Drafter ✕
TaxTMI 
