IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION NO :12240 of 2010 Dated: 1.6.2010 Between: Ramesh Chand Agarwal ..... PETITIONER AND 1 The Commissioner of Customs Central Excise Service Tax, Hyderabad and others. .....RESPONDENTS The Court made the following : THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION NO : 12240 of 2010 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is filed seeking to declare the action of the 1st respondent in granting conditional stay i.e., pre-deposit of penalty, vide order dated 13.5.2010 in Stay Petition No.10 of 2010 (H-IV) CE, as illegal and arbitrary. The petitioner filed an appeal before the 1st respondent against the order dated 29.9.2009 passed by the 2nd respondent imposing personal penalty of Rs.20,00,000/-. Along with the appeal, the petitioner also filed stay application before the 1st respondent. The 1st respondent having observed that the petitioner has not come up with any convincing reasons as to how the pre-deposit of the amounts payable would result in undue hardship to him, passed the order impugned herein directing the petitioner to deposit an amount of Rs.20,00,000/- by 28.5.2010. Heard the learned Counsel for the petitioner and the learned Standing Counsel for the respondents. Perused the material available on record. The learned Counsel for the petitioner contended that the show cause notice itself is illegal and that the penalty has been imposed on the proprietor but not on the firm and the main appeal is pending before the 1st respondent and that the petitioner has already paid an amount of Rs.4,00,000/- (Rupees Four Lakhs only) and therefore, the conditions imposed by the 1st respondent are liable to be set aside. In view of the facts and circumstances of the case and in view of the pendency of the appeal, we feel that it would suffice if the petitioner is directed to deposit Rs.10,00,000/- instead of Rs.20,00,000/-. Accordingly, the petitioner is directed to deposit Rs.10,00,000/- (Rupees Ten Lakhs only), within a period of two months from today. On such deposit, the appeal shall be disposed of in accordance with law, within a period of three months thereafter. It is made clear that the amount paid, if any, shall be given credit to the above stipulated sum. Accordingly, the writ petition is disposed of. No order as to costs. __________________________ Justice T. Meena Kumari _____________________________ Justice Nooty Ramamohana Rao Date: 1st June, 2010 nn. THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION NO : 12240 of 2010 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 01/06/2010