IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE ELEVENTH DAY OF JUNE TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 11806 of 2008 Between: M/s. Circar Jute Mills Private Limited., Kodurupadu Village, Bapulapadu Mandal, Krishna District. ..... PETITIONER AND 1 Commercial Tax Officer, Eluru, West Godavari District. 2 Appellate Deputy Commissioner (CT), Vijayawada, Krishna District. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue any appropriate Writ, order or direction more particularly a Writ of Mandamus and declare the action of the 2nd respondent in rejecting the stay petition by passing exparte orders as arbitrary, illegal, contrary to law, violative of Art. 14 of the Constitution of India and violative of Principles of Natural Justice and grant the consequential relief by granting stay of Collection of the disputed Tax of Rs.6,68,411/- from the petitioner pending disposal of the Appeal No. ELR/17/2008-09 before the second respondent and issue any other writ, order or direction as this Hon'ble Court may be pleased to deem fit and proper. Counsel for the Petitioner: MR.DANTU.SRINIVAS Counsel for the Respondents : SRI K. RAJI REDDY, SPL. STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 11806 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is filed by the petitioner seeking to declare the action of the 2nd respondent in rejecting the stay petition by passing ex parte orders as illegal and arbitrary and to grant stay of collection of the disputed tax of Rs.6,68,411/-, pending disposal of the appeal before the 2nd respondent. The main grievance of the petitioner is that against the assessment order passed by the 1st respondent, an appeal has been preferred before the 2nd respondent and along with the said appeal, an application seeking stay of collection of the disputed tax was filed, but the said application was rejected and taking advantage of the said rejection order, the 1st respondent issued notice demanding the disputed tax. Hence, the present writ petition has been filed by the petitioner. Heard the learned Counsel appearing for the petitioner and the learned Special Standing Counsel for Commercial Tax and perused the material available on record. It is the contention of the learned Counsel for the petitioner that the petitioner has preferred an appeal before the 2nd respondent and the same is pending and that at the time filing the appeal, the petitioner has already paid 12.5% of the disputed tax and in these circumstances, if the relief of stay is not granted and if the disputed tax is recovered, the very purpose of filing the appeal before 2nd respondent would be defeated. In the facts and circumstances of the case and in view of the fact that the appeal is pending before the 2nd respondent, without expressing any opinion on the merits of the case, We feel it a fit case wherein stay can be granted, but subject to certain conditions. Accordingly, there shall be stay of recovery of the disputed tax pending disposal of the appeal before the 2nd respondent subject to the condition of the petitioner depositing 50% of the disputed tax, within a period of six weeks from today. However, it is made clear that the amount paid if any, shall be given credit to the above stipulated sum. Subject to the above direction, the writ petition is disposed of. No order as to costs. ________________________ Justice T. Meena Kumari ___________________________ Justice Ramesh Ranganathan Date: 11th June, 2008 Note: Issue C.C. on Monday (BO) Gurc/nn. THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION No:11806 OF 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 11/06/2008