9911796707
TMI Blog1970 (10) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... thority under the Punjab General Sales Tax Act, 1948 (hereinafter referred to as the Act), has or has no power to grant a stay in respect of the recovery of the amount of tax during the pendency of the appeal. It was contended by Mr. Kang, learned counsel for the appellants, that under sub-section (5) of section 20 of the Act, no power is vested in an appellate authority to grant stay during the pendency of an appeal and that in the absence of a specific provision, power of staying the recovery proceedings cannot legally be exercised. On the other hand, it was contended by Mr. R.L. Aggarwal, learned counsel for the respondents, that the proviso to sub-section (5) of section 20 clearly indicates that power of stay exists in the appellate aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , to entertain an appeal if it is satisfied that the dealer is unable to pay the tax or penalty or both or after part payment of such tax or penalty or both. From the plain reading of the proviso, it is clear that in case of nonpayment of the tax, before entertaining an appeal, the appellate authority has been empowered to determine if the assessee is unable to pay the tax in full or the penalty and to pass an appropriate order, either exempting it in full or requiring part payment of the same. A fortiori the exercise of this wide power implies that in case of entertaining the appeal the appellate authority has power to stay the recovery proceedings and pass an order to that effect. If that be not so, it would be strange to find that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... desh, and Others[1955] 6 S.T.C. 670. No contrary decision was cited by the learned counsel for the appellants. Moreover, it may be observed on the basis of the Government instructions as is evident from the letter dated 12th November, 1969 (copy annexure 'C' to the writ petition). In that letter, addressed by the Excise and Taxation Officer and Assessing Authority, Ferozepore, to the respondent, it was stated thus: "In view of the Government instructions any such interim stay orders passed by the appellate authorities are to be treated to have been vacated after the expiry of 60 days and in your case that limitation has since expired. You are, therefore, requested in your own interest to deposit the sum of Rs. 74,765.44 outstanding against ..... X X X X Extracts X X X X X X X X Extracts X X X X
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