IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. C.W.P. No.2786 of 2011 Date of decision: 4.3.2011 Bhushan Power & Steel Limited. -----Petitioner. Vs. The State of Punjab & others. -----Respondents. CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE RAJESH BINDAL Present:- Mr. Sandeep Goyal, Advocate for the petitioner. Mr. Amol Rattan Singh, Addl.A.G., Punjab. --- ADARSH KUMAR GOEL, J. 1. This petition seeks quashing of notice for recovery of tax dues. During the hearing, learned counsel for the petitioner limited the relief sought to stay against recovery of `69,34,096/-. 2. Case of the petitioner is that it supplied goods to a Government department at Patna after the goods were transferred from Punjab to the State of Bihar through the branch of the petitioner. The petitioner took the plea that it was not taxable in the State of Punjab as it was not transaction of inter- State sale but only transfer to the branch of the petitioner. However, the Assessing Authority did not accept this plea and created demand of tax which was upheld upto the Tribunal, against which appeal is pending with the Central Sales Tax Appellate Authority, respondent No.3 constituted under the C.W.P. No.2786 of 2011 provisions of the Central Sales Tax Act, 1956. The petitioner also applied for stay. However, the stay application has not yet been taken up for hearing and in the meanwhile, recovery proceedings have been initiated. 3. Learned counsel for the petitioner submits that pending consideration of stay matter by the Appellate Authority, it will not be appropriate that recovery is effected from the petitioner by coercive measures. Reliance has been placed on judgment of this Court in Indian Oil Corporation Ltd. v.Excise and Taxation Officer-cum-Assessing Authority, Jalandhar-I and others (1995) 96 STC 90 holding that a statutory remedy of appeal should not be rendered meaningless by effecting recovery without giving an opportunity of stay application being considered. 4. In view of law laid down by this Court, we direct that recovery in pursuance of notice dated 17.1.2011, Annexure P-6, will remain stayed till the application for interim stay is decided by the Sales Tax Appellate Authority. The said authority may take a decision in the stay matter expeditiously. The petition is disposed of. (ADARSH KUMAR GOEL) JUDGE March 04, 2011 ( RAJESH BINDAL ) ashwani JUDGE 2