2014 (4) TMI 495

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....ief of the present case are that assessment order dated 17.05.2013 has been passed against the revisionist for the assessment year 2007-08 and the assessing authority again levied tax on the sale of SIM cards as well as on the rentals received on the fixed telephone service and a huge liability of tax was created. Aggrieved by the said order, the revisionist filed first appeal along with an application for stay. By order dated 31.12.2013 (Annexure No.5), the appellate authority granted interim stay of 50% of the tax during the pendency of the appeal. Rest is to be deposited by assessee in pursuance of the assessment/penalty order. Aggrieved by the aforesaid first appellate order, the revisionist filed Second Appeal No.3/2014. By order....

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....he 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 should also be allowed where two views are possible. While considering the application for....

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....ate 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. Keeping in view the settled position of law on the point in issue and from the perusal of the appellate order passed by the appellate authority/appellate tribunal thereby passing the impugned orders, the said authorities have not indicated its mind so far as the existence of the prima facie case on merits on appeal as well as the financial condition which are to be considered by them (appellate authority/....