Interim stay in admitted VAT appeal granted subject to deposit, but adjustment of statutory deposit was refused.

In an admitted appeal under the Andhra Pradesh Value Added Tax Act, the court treated the stay question under Section 31(3)(a) and held that the availability of revision under Section 31(3)(b) did not justify refusal of interim protection. It noted that similar matters had already received interim relief on deposit of 25% of the demand, and found rejection of stay solely for want of a prima facie case inappropriate in an admitted appeal. However, the request to adjust the 12.5% statutory deposit against the further 25% stay condition was rejected. Protection against collection of the disputed tax was granted subject to deposit of 25% in each appeal within time.

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Issues: Whether, in an admitted appeal under Section 31 of the Andhra Pradesh Value Added Tax Act, the writ petitioner was entitled to protection against collection of the disputed tax, and whether the plea for adjustment of the statutory deposit against the additional deposit directed as a condition for stay could be accepted.

Analysis: The appeals had already been admitted, and in that setting the question of stay had to be examined under Section 31(3)(a) of the Act. The availability of revision under Section 31(3)(b) was not treated as a reason to decline interference, particularly when similar matters were pending and interim protection had been granted in comparable cases on deposit of 25% of the demand. The rejection of stay solely on the absence of a prima facie case was found inappropriate in an admitted appeal. At the same time, the request to treat the 12.5% statutory deposit as adjustable against the further 25% condition was declined.

Conclusion: The petitioner was granted protection against collection of the disputed tax on deposit of 25% in each appeal within the stipulated time, while the request for adjustment of the statutory deposit was rejected.

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