The court upheld the authority's decision to grant a stay subject to a 10% deposit, emphasizing the need for procedural propriety in stay applications.

ORDER :

Heard.

2. This second round of petition, at the instance of assessee, is in the matter of prayer for stay against demand.

3. The petitioner carries on the business of Handicraft. The facts which are borne out from the record of the case are that assessment for the years 2014-15 and 2016-17 were re-opened on the basis of a survey report, which eventually led to an order dated 07.03.2022 for the years 2014-15 and 2016-17. Another order was passed on 21.11.2022 in respect of the assessment year 2020-21.

4. Aggrieved by the aforesaid orders, the petitioner invoked statutory remedy of appeal before the appellate authority which is pending consideration.

5. On petitioner's prayer for stay of demand pending consideration of the appeal, the authority proceeded to pass an order directing the petitioner to deposit 20% of the demand. The petitioner approached this Court by filing a writ petition being D.B. Civil Writ Petition No. 3776/2023, mainly on the ground that the order disposing off the prayer for stay was more-or-less mechanical, without application of judicial mind and abdicating judicial functions by mechanically following the administrative instructions. The plea of the petitioner found favour with this Court and an order dated 01.05.2023 was passed, by which the writ petition was allowed directing the matter to be reconsidered.

6. Thereafter, the authority considered the case of the petitioner and passed a fresh order on prayer for stay on 12.06.2023, which is impugned in this petition. It be noticed that after consideration of the application, the order of demand has been stayed subject to depositing 10% of the demand.

7. In the second round of writ petition, learned counsel for the petitioner now submits that the authorities have again committed patent illegality and perversity and acted with arbitrariness in deciding the petitioner's application. Learned counsel for the petitioner would submit that the authorities are applying different yardsticks on more-or-less similar cases. Referring to another case of Shree Balaji Metasteels Private Ltd., it is submitted that in that case there was an absolute stay without even demanding 10% to be deposited. It is also submitted that though the department's circular dated 23.04.2022 required the matter to be referred to the High Pitched Scrutiny Assessment Committee, that procedure has not been resorted to and the stay application has been disposed off. Learned counsel for the petitioner would further submit that the authority has again not applied due and proper application of mind to each and every submission, details and various figures with regard to receipt expenditure in order to carry out assessment.

8. On the other hand, learned counsel for the respondents would submit that after the order was passed by this Court in the first round of litigation, the authority has duly applied its mind and has passed a detailed order. He would submit that the authority, after consideration of the material on record and further taking into consideration the submissions of the petitioner, has directed that subject to payment of 10% of the demand, there shall be stay against recovery of the balance amount.

9. We have gone through the record and considered the submissions of learned counsel for the parties.

10. When the petitioner approached this Court by filing a writ petition earlier, this Court found that there was no proper application of mind and the authority, treating itself to be bound by administrative instructions, abdicated its judicial functions while deciding the matter. That prompted this Court to direct the authorities to re-consider the matter. We have gone through the order which has been passed by the authority while considering and disposing off the prayer for stay. The order refers to the material on record, the case of the petitioner, submissions followed by the order with regard to stay of recovery of demand, subject to payment of 10% of the demand.

11. In our view, t