Writ interference under Article 226 declined where the Tribunal found no prima facie case for stay of disputed tax liability.

Writ interference under Article 226 was declined against a Tribunal's interim order refusing waiver of interest and penalty beyond 25%. The High Court held that, in writ jurisdiction, it would not reappraise the merits as if hearing the appeal itself, especially where the Tribunal had found no prima facie case for stay of the disputed liability. The prior decision relied on by the petitioner was treated as factually distinguishable. No interference was called for with the interim order, and the writ petition was dismissed.

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Issues: Whether interference was warranted under Article 226 of the Constitution of India with the Tribunal's interim order declining waiver of interest and of the amount of penalty beyond 25%.

Analysis: The petitioner sought writ interference against an interim order passed by the Tribunal in pending proceedings. The Court held that, in exercise of writ jurisdiction, it would not reassess the merits of the controversy as if deciding the appeal itself, particularly where the Tribunal had found no prima facie case for stay of the disputed liability. The reliance placed on a prior decision was held to be distinguishable on its facts.

Conclusion: No interference was called for with the Tribunal's interim order, and the writ petition was dismissed.

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