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2022 (7) TMI 651 - MADRAS HIGH COURTValidity of assessment order - seeking extension of stay - request for extension of stay rejected on the ground that there is no provision under the TNVAT Act for considering such extension - HELD THAT:- The provisions of Section 51(4) state that, notwithstanding the preferring of the appeal under sub-Section (1) of Section 51, tax shall be paid in accordance with the order of assessment, as against which appeal is preferred - the first proviso states that the appellate authority may, in his discretion, issue such directions as he thinks fit in regard to the payment of tax before disposal of the appeal subject to the appellant furnishing sufficient security to his satisfaction in the form and manner as he may stipulate. In a situation where the hearing of the appeal exceeds the period of 180 days from date of grant of stay, then the stay granted stands automatically vacated. The purpose of insertion of the second proviso is to ensure speedy disposal of appeals, since where interim protection is once obtained there is a tendency to stretch the benefit inordinately with the appeals stagnating inordinately. This causes accumulation of the substantial arrears of tax and penalty demands. It is to protect against such a situation that the second proviso has been inserted - the rigour of the second proviso would not be applicable to a case such as the present one, where the petitioner has cooperated in full in the disposal of the appeals and there is admittedly no delay on its part or any attempt to protract the appeal proceedings. The stay granted originally is extended, by concurrence of the respondent as well and a direction issued to R2 to dispose the appeals within a period of three (3) months from today, subject to the petitioner extending the validity of the bank guarantee for an another period of three (3) months - Petition allowed.
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