Pending stay applications require prompt disposal, with recovery kept in abeyance until appellate consideration is completed.

The High Court directed expeditious disposal of a pending stay application filed with the appeal, recognising that delay in deciding waiver of deposit and stay could leave the assessee exposed to coercive recovery. It held that the appellate authority must consider the application promptly and, until that decision is taken, recovery proceedings arising from the adjudication order should remain in abeyance. The direction was intended to preserve interim protection pending appellate consideration and prevent enforcement action before the stay request is decided.

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Issues: Whether the petitioner was entitled to an expeditious consideration of the stay application pending appeal and interim protection against recovery of the adjudicated demand.

Analysis: The appeal and the accompanying application for waiver of deposit and stay were already pending before the appellate authority. The order recognised that the application required prompt disposal, since delay could expose the assessee to coercive recovery in the absence of stay.

Outcome: The appellate authority was directed to dispose of the stay application within two months, and recovery proceedings pursuant to the adjudication order were kept in abeyance until such disposal.

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