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2024 (5) TMI 34 - MADRAS HIGH COURTStay of demand - disposal of the first appeal subject to the condition that the petitioner pays 20% of the disputed tax demand - whether grant of stay is in exercise of discretionary jurisdiction? - HELD THAT:- Appellate authority did not examine whether the petitioner has made out a prima facie case. The petitioner asserted in the request letter that it has limited resources and would not be able to provide services to the public if directed to make the pre deposit. Although this does not qualify as evidence of financial stringency, this aspect warranted consideration. It should also be noticed that office memorandum dated 31.07.2016 (Instruction No.1914) does not make it mandatory that the assessee should remit 20% of the disputed tax demand. Solely for the purpose of enabling a reconsideration of the stay application by applying the classical principles of prima facie case, balance of convenience and irreparable hardship, including financial stringency, the impugned order calls for interference. The impugned order is set aside and the stay application is remanded for reconsideration by the appellate authority / first respondent in accordance with the observations set out herein. First respondent may exercise its discretion in accordance with law. In relation to the consideration of the stay application, it is open to the petitioner to file an additional affidavit and supporting documents.
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