Reasoned stay orders required before insisting on pre-deposit or security; mechanical non-speaking refusal was set aside for fresh consideration.

Grant or refusal of stay must be based on a reasoned assessment of the governing factors, including a prima facie case, financial stringency, and balance of convenience. Non-speaking orders that mechanically direct further pre-deposit or bank guarantee without showing application of mind are unsustainable, especially where the stay application raises objections based on statutory charge and the merits of the assessment challenge. The HC set aside the impugned stay orders and remitted the stay applications for fresh consideration, with interim protection against recovery in the meantime.

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Issues: Whether the non-speaking orders passed on the stay applications were sustainable and whether the matters required fresh consideration on the settled criteria for grant of interim protection.

Analysis: Grant or refusal of stay is a discretionary exercise that must be informed by the relevant factors, namely a prima facie case, financial stringency, and balance of convenience. The impugned orders did not disclose any application of mind to these factors and were passed in a mechanical manner by directing further pre-deposit and bank guarantee. Such orders could not stand when the stay applications raised contentions based on the statutory charge and the merits of the assessment challenge.

Conclusion: The impugned stay orders were set aside and the stay applications were directed to be reconsidered afresh.

Final Conclusion: The petitioner obtained a remand for fresh decision on the stay applications, with protection against recovery in the meantime.

Ratio Decidendi: A stay application must be decided by a reasoned order after considering the governing factors for interim relief, and a mechanical non-speaking order directing pre-deposit or security is unsustainable.

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