Summary
In an appeal against a conditional interim stay of recovery of interest on entry tax, the Supreme Court directed that no further interest recovery be made pending the company’s writ petition. Counsel reported that approximately one-third of the demand had already been realised. The Court referred to its companion Indian Oil judgment on interest liability and left the pending writ petition for final determination. Recoveries already made remained subject to that outcome.
Issues
- What interim recovery protection was appropriate while the writ challenge to entry-tax interest remained pending.
Held
- The appeal concerned an interim order, not final adjudication of the writ petition. Following the companion ruling on entry-tax interest, the pending petition required final determination by the High Court. (¶ 2–3)
- No further recovery towards interest on entry-tax arrears was to be effected. Any interest already recovered was subject to the final result of the pending writ petition. (¶ 4)
Result
Appeal disposed of with a direction against further interest recovery pending the writ petition. Existing recovery made subject to its final outcome; no final waiver or refund ordered.