THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.117 of 2010 ORDER: (Per Hon’ble Sri Justice Ramesh Ranganathan) The action of the 3rd respondent in taking coercive steps, pursuant to the order of rejection of the 2nd respondent dated 11.12.2009 levying penalty of Rs.1,28,940/-, is under challenge in this Writ Petition. The petitioner, a private limited company carrying on business in manufacture of printing material, cartons, packing material etc., was disallowed input tax credit of Rs.72,996/-, besides other disallowances, by order dated 06.05.2009. Aggrieved thereby, the petitioner carried the matter in appeal to the Appellate Deputy Commissioner who, by order dated 12.11.2009, dismissed the appeal. The matter was carried in second appeal to the Sales Tax Appellate Tribunal (STAT). The stay petition filed before the Additional Commissioner (2nd respondent), seeking stay of collection of the disputed penalty of Rs.1,28,940/-, was dismissed by order dated 11.12.2009. Aggrieved thereby, the present Writ Petition. Sri Tejprakash Toshniwal, Learned Counsel for the petitioner, would submit that the petitioner had erroneously assumed that the tax holiday for a period of seven years (commencing from 18.09.2009 to 17.02.2006) continued to remain in force even thereafter and, as such, had failed to pay the tax due as per the return; as soon as they realized the mistake, they had voluntarily paid the tax due; and, in the absence of any intention to evade payment of tax, the levy of penalty was impermissible. Prima facie, Section 51 of the A.P. VAT Act requires tax to be paid on the basis of the return filed. The intention of the assessee does not seem to be a consideration for levy of penalty thereunder. We, however, refrain from examining this contention any further in as much as the substantive appeal is pending adjudication before the STAT. We consider it appropriate to dispose the Writ Petition directing the respondents not to take coercive steps for recovery of the disputed penalty, pending disposal of the appeal by the STAT, on condition that the petitioner deposits 50% of the disputed penalty within a period of two weeks from today. The Writ Petition is disposed of accordingly. No costs. _____________ V.V.S.RAO, J ___________________________ RAMESH RANGANATHAN, J 09.03.2011 MRKR