20% Pre deposit is not a precondition for graining a stay on demand:

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20% Pre deposit is not a precondition for graining a stay on demand:

 

Observations of the Hon Delhi HC while rejecting the precondition of 20% Pre deposit for granting stay on demand:

  1. The Revenue erred in proceeding with a premise that the Assessee was obliged to tender or place evidence of having deposited 20% of the disputed demand before its application for stay under Section 220(6) could have been considered.

 

  1. The deposit which an Assessee may be called upon to make will have to be examined and answered bearing in mind factors such as prima facie case, undue hardship and likelihood of success.

 

  1. The circular dated 31/07/2017 would not operate as a fetter upon the power otherwise conferred on a quasi-judicial authority and that it would be wholly incorrect to view the same as mandating the deposit of 20%.

 

  1. The respondents have clearly erred in proceeding on the assumption that the application for consideration of outstanding demands being placed in abeyance could not have even been entertained without a 20% pre-deposit.

 

National Association Of Software And Services Companies (NASSCOM) (TS-195-HC-2024(DEL))

 

 

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