Stay applications in tax appeals should be decided promptly, with coercive recovery paused until interim relief is determined.

Where a stay application in a pending tax appeal remains undecided, coercive recovery should not continue in a manner that could undermine the appellate remedy, and the application should be heard expeditiously, preferably within six weeks. The text also notes that a request for release of attached goods, said to be needed for irrigation and allied work in drought-affected areas, should receive prompt administrative decision, here within one week of receipt. The operative legal point is that delay in deciding interim relief should not prejudice the assessee or render the appeal ineffective, while time-bound disposal is appropriate where immediate public-use considerations are raised.

---

---

Issues: (i) whether the pending stay application in appeal should be directed to be heard expeditiously and coercive recovery restrained until such decision; (ii) whether the application for release of attached goods should be decided within a fixed time.

Issue (i): whether the pending stay application in appeal should be directed to be heard expeditiously and coercive recovery restrained until such decision

Analysis: The stay application remained undecided despite repeated requests, while coercive recovery proceedings had already commenced. In such circumstances, the pending stay request required immediate consideration, and recovery action could not proceed simultaneously in a manner that would prejudice the appeal.

Conclusion: The stay application was required to be decided expeditiously, preferably within six weeks, and no coercive recovery was to be initiated until the application was decided.

Issue (ii): whether the application for release of attached goods should be decided within a fixed time

Analysis: The request concerned goods stated to be needed for irrigation and allied programmes in drought-affected areas, warranting prompt administrative consideration.

Conclusion: The competent authority was directed to decide the application for release of the attached goods within one week of receipt.

Final Conclusion: The petition succeeded to the extent of securing expeditious disposal of the stay application, interim protection against coercive recovery, and prompt decision on the request for release of attached goods.

Ratio Decidendi: When a stay application in a pending tax appeal remains undecided, coercive recovery should not proceed so as to defeat the efficacy of appellate remedy, and the application must be heard promptly.

---