Coercive recovery can be restrained when an assessment appeal is restored for fresh adjudication and pending disposal.

When an assessment appeal has been restored for fresh adjudication, coercive recovery based on the earlier disposal may be restrained, and interim protection can be granted to prevent harassment until the appeal is decided. In that setting, the Court may also direct the appellate authority to dispose of the pending appeal expeditiously to avoid prolonged uncertainty and further recovery action. The writ petition succeeded, coercive action was stayed pending the appeal, and the appellate authority was ordered to decide the appeal within six weeks.

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Issues: (i) Whether recovery proceedings and rejection of stay could be interfered with while the assessee's appeal against assessment was pending and had been restored for fresh consideration. (ii) Whether the appellate authority should be directed to dispose of the pending appeal within a fixed time.

Issue (i): Whether recovery proceedings and rejection of stay could be interfered with while the assessee's appeal against assessment was pending and had been restored for fresh consideration.

Analysis: The appeal against the assessment was pending before the appellate authority, and the earlier ex parte disposal had already been set aside by the Tribunal, restoring the appeal for adjudication. In that backdrop, continued coercive recovery based on the impugned rejection of stay was not considered appropriate. The Court granted interim protection so that the assessee would not face harassment till the appeal was decided.

Conclusion: The issue is answered in favour of the petitioner, and interim restraint against coercive recovery was ordered.

Issue (ii): Whether the appellate authority should be directed to dispose of the pending appeal within a fixed time.

Analysis: Since the dispute was already pending before the appellate authority and the restoration of the appeal required further consideration on merits, an early disposal direction was warranted to avoid prolonged uncertainty and consequential recovery action.

Conclusion: The appellate authority was directed to dispose of the appeal within six weeks.

Final Conclusion: The writ petition succeeded, protection against coercive action was granted until the appeal is decided, and an expedited timeline was fixed for disposal of the appeal.

Ratio Decidendi: When an assessment appeal is restored for fresh adjudication, coercive recovery based on the earlier disposal can be restrained and the appellate authority may be directed to decide the appeal expeditiously.

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