Conditional stay on tax appeal deposit and bank guarantee set aside; coercive recovery restrained pending disposal of appeal.

Under the Tamil Nadu Value Added Tax Act, a conditional stay requiring further deposit of 25% of the disputed tax and a bank guarantee was treated as unwarranted where the appellant had already made the prescribed payment at the time of filing the appeal. The appellate authority's additional conditions were considered unjustified in light of the appeal remaining pending for a considerable period. The matter was therefore to be decided within a fixed time, and coercive recovery was restrained in the meantime to protect the appellant pending disposal of the statutory appeal.

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Issues: Whether the conditional stay order directing further deposit of 25% of the disputed tax and furnishing of bank guarantee was liable to be set aside, and whether coercive recovery should be restrained till disposal of the statutory appeal.

Analysis: The appeal had been filed under Section 51 of the Tamil Nadu Value Added Tax Act, 2006, and the petitioner had already paid the prescribed amount at the time of filing the appeal. The appellate authority nevertheless directed payment of an additional 25% of the disputed tax and furnishing of bank guarantee, even though the appeal had remained pending for a considerable time. In these circumstances, the impugned conditional order was found unjustified, and the appeal was directed to be decided within a fixed time while protecting the petitioner from recovery steps in the interregnum.

Conclusion: The conditional stay order was set aside, and the respondents were restrained from taking coercive recovery steps until disposal of the appeal.

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