Interim stay against tax demand granted subject to additional deposit before recovery is restrained

Interim protection against recovery of a tax demand may be granted pending disposal of a writ petition, but it can be made conditional rather than unconditional. The Calcutta HC disposed of the appeal by staying recovery of the demand, penalty and interest, subject to deposit of a further 10 per cent of the disputed tax within three weeks.

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Issues: Whether interim protection should be granted against recovery of the tax demand pending disposal of the writ petition, and whether such protection should be unconditional or subject to payment of a further amount.

Outcome: The appeal was disposed of by granting stay against the demand, penalty and interest on compliance with a condition to deposit a further 10 per cent of the disputed tax within three weeks.

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