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2013 (3) TMI 513 - MADRAS HIGH COURTStay - Recovery proceedings of the disputed demand - disallowance of the claim of relief under Section 10-B, disallowance of sale of scraps for the reason that the TDS was not collected at source under Section 206 and an amount was added on the ground that charges towards job work and clearing agents were not subjected to tax deduction at source - petitioner filed appeal before the second respondent-appellate authority along with stay petition praying to stay the collection of the disputed demand - Held that:- It is the cardinal principle that the power of stay is not ordinarily to be exercised in a routine way or as a matter of course, in view of the special nature of Taxation and Revenue laws. Only when a strong prima-facie case is made out and when there is balance of convenience, the Tribunal/appellate authority will consider whether or not to grant stay of the recovery proceedings and the stay will be granted only in deserving and appropriate cases, where the Tribunal/appellate authority is satisfied that the entire purpose of the appeal will be frustrated or rendered nugatory by allowing the recovery proceedings to continue during the pendency of the appeal before it. In the present case, it is informed by the learned counsel appearing for the parties that the recovery proceedings would be initiated, as impugned notice of demand is issued and the stay petition has not yet been disposed of by the second respondent-appellate authority. Thus the Writ Petition is disposed of, with a direction to the second respondent-appellate authority to dispose of the said stay petition, on merits and in accordance with law, within a period of four weeks from the date of receipt of a copy of this order. Till such time the parties shall maintain status-quo as on today.
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