Order Date – 11 August 2022

Facts – 

• The Appellant, Imax Infrastructure Pvt. Ltd., are aggrieved by the penultimate portion of the order where the learned Writ Court provided that there will be a conditional stay of the impugned adjudication subject to deposit of 10% of the demand in question within a time frame and if the appellants comply with the same, the respondents were directed not to initiate any coercive action against the appellants. 
• Aggrieved by the decision to deposit of 10% of demand, the appellant filed an appeal.

Issue – 

• Whether deposit of 10% of the entire demand or only deposit of 10% of the tax in dispute has to be directed to be made?

Order - 

• The High court observed that the learned Single Bench rightly exercised its discretion and bearing in mind the mandate in Rule 51 has issued a direction. However, they found that the direction to deposit 10% of the entire demand would be onerous as had the appellants file appeals before the Joint Commissioner under Section 107 of the Act, the appellants were required to deposit only 10% of the tax in dispute. 
• Therefore, the court partly allowed the appeal and modified the directions issued by the learned Single Bench to deposit 10% of the demand in question as deposit of 10% of the tax in dispute. 
• The appellants were granted 30 days time from the date of receipt of the server copy of this order to make the deposit before the appropriate authority and if the same is complied with, no coercive action shall be taken against the appellants for recovery of the balance amount as demanded, appeal partly allowed.