2013 (6) TMI 410

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....8-2009, assessee/ petitioner filed First Appeal and moved an application for grant of interim injunction before opposite party no.2/ Additional Commissioner Grade -2 (Appeal) -5, Commercial Tax , Lucknow , who by order dated 23.3.2013 granted interim stay in favour of the petitioner to the extent of 50% of the tax liability to be paid by the assessee as per order passed by assessing authority . Aggrieved by the order dated 23.3.2013, petitioner filed Second Appeal no.181 of 2013, the Tribunal by order dated 27.4.2013 granted interim protection to the petitioner to the extent of 75% of the tax liability as per the assessment order shall remain stayed till disposal of the appeal. Aggrieved by the said facts, present writ petition has been ....

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....ied, it would cause undue hardship to him, though there may be no financial restrain on the appellant running in a goods financial condition. The arguments that appellant is in a position to deposit or if he succeeds in appeal, he will be entitled to get the refund, are not the considerations for deciding the application. The order of the Appellate Authority itself must show that it had applied its mind to the issue raised by the appellant and it has been considered in accordance with law. The expression "undue hardship" has a wider connotation as it takes within its ambit the case where the assessee is asked to deposit the amount even if he is likely to exonerate from the total liability on disposal of his appeal. Dispensation of deposit s....

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....ly disposal of the appeal. Even the Supreme Court in M/s Pennar Industries Ltd. vs. State of A.P. and others 2009 NTN (Vol. 39) - 126 observed that if on cursory glance it appears that the demand raised has no leg to stand, it would be undesirable to require the assessee to pay full or even substantive part of the demand and the stay application should not be disposed of in a routine manner unmindful of the consequences. After hearing learned counsel for the petitioner, learned Standing Counsel and also taking into consideration on the point in issue, from the perusal of the appellate order as well as the order passed by the Tribunal , the position which emerge out to the effect that no valid reason has been assigned by the said autho....