IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE EIGHTH DAY OF SEPTEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 19399 of 2008 Between: M/s. Yograj Constructions, D.No. 4-3-537& 538, Hanuman Tekdi, Koti, Hyderabad, Rep by its Manager, G. Ramesh Kumar, S/o. Late G. Satyanarayana ..... PETITIONER AND 1 Joint Commissioner (CT) Legal, 2nd Floor, Office of the Commissioner of Commercial Taxes, Opp: Gandhi Bhavan, Nampally, Hyderabad. 2 Appellate Dy. Commissioner (CT) Secunderabad Division, 5th Floor, Commercial Tax Complex, Opp: Gandhi Bhavan, Nampally, Hyderabad. 3 Commercial Tax Officer, Abids Circle, Hyderabad. .....RESPONDENT(S) 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 to issue a writ or direction more particularly one in the nature of Writ of Mandamus declaring the impugned notice dated 29-8-2008 issued by the 3rd respondent in TIN CTO/ABIDS/2007-2008 in so far as the penalty of Rs. 64,395 i.e. for the assessment year 2006-2007 is concerned as illegal, arbitrary, illegal and contrary to the principles of natural justices and fair play and consequently set aside the same and to pass Counsel for the Petitioner:MR.T.RAMESH BABU Counsel for the Respondent No.: GP 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 : 19399 of 2008 ORAL ORDER: (per T HE HON’BLE MRS. JUST ICE T .MEENA KUMARI) Seeking a writ of mandamus, declaring the notice 29.08.2008 issued by the 3rd respondent pursuant to rejection of the stay petition by the 2nd respondent, insisting payment of penalty of Rs.64,395/- along with the disputed tax for the year 2006-2007, as illegal and arbitrary and consequently to direct the respondents not to collect the disputed penalty pending appeal, the petitioner filed this writ petition. According to the petitioner the third respondent erroneously viewed that the petitioner is liable to be registered under the APVAT Act. The petitioner is engaged in sale of semi residential complex. The petitioner was assessed under the VAT by the 3rd respondent and raised a demand of Rs.2,57,581. The 3rd respondent also imposed a penalty of Rs.64,395/-. Aggrieved thereby, the petitioner approached the 2nd respondent, by ﬁling an appeal and a stay petition and the said stay application was dismissed. The petitioner ﬁled a further stay petition before the 1st respondent, pending appeal before the 2nd respondent. It is the grievance of the petitioner that pursuant to the rejection of stay by the 2nd respondent, though the stay petition is pending before the 1st respondent and appeal before the 2nd respondent, 3rd respondent issued the impugned notice insisting for payment of disputed tax and also penalty. Hence, the writ petition. Heard the learned counsel for the petitioner and the learned Special Standing Counsel for the respondents. It is submitted by the learned counsel for the petitioner that pending appeal, the issuance of impugned notice demanding to pay the penalty is contrary to law. We have gone through the record. We feel that the interest of justice would have been met if stay was granted pending appeal, subject to the condition of the petitioner depositing 25% of the penalty. Accordingly, the writ petition is disposed of directing the petitioner to deposit 25% of the penalty within a period of six weeks from the date of receipt of a copy of this order and the respondents are directed not to take coercive steps for recovery of the balance amount pending appeal. The deposit of amount shall be without prejudice to the rights of the petitioner in appeal. If any amount has already been paid by the petitioner, the same shall be given credit. The writ petition is accordingly disposed of. No costs. _____________________ T.MEENA KUMARI, J. ____________________________ RAMESH RANGANATHAN, J. Dated:08.09.2008 GS/ASP