IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE FIFTH DAY OF SEPTEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WVMP NO.2010 OF 2008 & WPMP NO.5714 OF 2008 & WRIT PETITION NO : 4393 of 2008 Between: M/s Mahindra & Mahindra Ltd., Automotive Sector, Mahindra Nagar, Zaheerabad, Medak District, A.P., Rep. by its Deputy General Manager (Accounts), Mr. A. Kameshwar Rao ..... PETITIONER AND The Assistant Commissioner (CT), Begumpet Division, Hyderabad. .....RESPONDENT 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 an appropriate writ, order or direction more particularly one in the nature of writ of mandamus declaring the action of the 1st respondent in passing the impugned assessment order dated 11.2.2008 treating the turnover of branch transfers as inter-state sales and also for the assessment year 2005-2006 under the CST Act, restricting the deferment contrary to the ﬁnal eligibility certiﬁcated granted to the petitioner as illegal, arbitrary, high handed, without authority of law and jurisdiction and contrary to the principles of natural justice and set aside the same and declare that the petitioner is entitled for exemption on the disputed turnover representing stock transfers in terms of Section 6A of the CST Act and pass such other order or orders. Counsel for the Petitioner:MR.BHASKAR REDDY VEMIREDDY Counsel for the Respondents: SRI A.V. KRISHNA KOUNDINYA, SPL. STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WVMP NO.2010 OF 2008 & WPMP NO.5714 OF 2008 & WRIT PETITION NO : 4393 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is ﬁled challenging the assessment order, dated 11.2.2008 passed by the 1st respondent, for the assessment year 2005-06, on the ground that the disputed sales are Branch Transfers and they are not inter-State sales and hence, the petitioner is entitled to claim exemption under Section 6A of the CST Act. On 29.2.2008, this Court while admitting the writ petition granted interim stay in WPMP NO.5714 of 2008 subject to the condition of the petitioner depositing Rs.5 Crores on or before 30.4.2008. Now, the respondents- authorities ﬁled the above WVMP seeking to vacate the interim order dated 29.2.2008. When the interlocutory application viz., WVMP is taken up, both the counsel brought to the notice of this Court that the issue involved in this matter is squarely covered by the orders of this Court dated 8.7.2008 in WPNo.13629 of 2008, which was ﬁled by the present assessee. Both the counsel agreed to dispose of the matter in terms of the above order. In view of the above submission, the writ petition is disposed of in terms of the order in WP No.13629 of 2008, dated 8.7.2008. At this stage, the learned Counsel for the writ petitioner submitted that the interim order has been complied with and therefore, the interim order can be made absolute. But the learned Standing Counsel has vehemently opposed the said contention and tried to convince the Court to modify the interim order by enhancing the deposit amount. In view of the above submissions and keeping in view the quantum of tax due, We feel it a ﬁt case wherein the interim order can be made absolute by modifying the same. Accordingly, the interim order dated 29.2.2008 in WPMP No.5714 of 2008 is made absolute, subject to the condition that the petitioner shall deposit Rs.15 Crores (Rupees Fifteen Crores only). In view of the submission made by the learned Counsel for the petitioner that the petitioner has already deposited Rs.5 Crores, it is a ﬁt case to grant time to the petitioner to deposit enhanced sum of Rs.10 Crores. Out of Rs.10 Crores, Rs.5 Crores (Rupees Five Crores) shall be paid on or before 30th October, 2008 and the remaining Rs.5 Crores (Rupees Five Crores) shall be paid on or before 30th January, 2009. It is needless to observe that in default of payment as stipulated above, the order impugned in this writ petition shall become operative. WVMP and WPMP are, accordingly, ordered. ________________________ Justice T. Meena Kumari _________________________ Justice Ramesh Ranganathan Date: 5th September, 2008 Nn. THE HON'BLE SMT JUSTICE T.MEENA KUMARI and THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WVMP NO.2010 OF 2008 & WPMP NO.5714 OF 2008 & WRIT PETITION NO : 4393 of 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 05/09/2008