HON'BLE MR JUSTICE GHULAM MOHAMMED AND HON'BLE MR JUSTICE G. BHAVANI PRASAD WRIT PETITION No. 21113 of 2009 Between: M/s Indoco Remedies Limited ..... PETITIONER AND Commercial Tax Officer, Vidyanagar Circle , Hyderabad and four others .....RESPONDENTS ORDER: (Per Hon'ble Sri Justice Ghulam Mohammed) This Writ Petition has been filed seeking a Writ of Certiorari quashing the Arrear Notice dated 16.9.2009 for the period April 2005 to September 2006 issued by the first respondent and the Revised Assessment Order dated 20.7.2009 for the period April 2005 to September 2006 passed by the second respondent as illegal and arbitrary. Brief facts of the case are that the petitioner-Company herein is engaged in the business of manufacturing, selling, supply/distribution of various drugs and medicines and is also a registered dealer on the rolls of the Commercial Tax Officer, Vidyanagar Circle, Secunderabad under the provisions of the AP VAT Act, 2006. It is stated that the petitioner was issued with the notice dated 6.5.2009 in Form VAT 305A by the Assistant Commissioner (CT) VMC-II, Secunderabad Division-second respondent herein proposing to levy tax @ 12.5% on the turnover of Rs. 29,61,55,601/- for the period 01.10.2006 to 28.2.2009 on the ground that the petitioner is paying tax @ 4% on the medicated tooth paste instead of a correct rate of 12.5% under residuary item of Entry 88 of the schedule IV of the APVAT Act. It is stated that the impugned products are not excluded from the products classified under Entry 88 of Schedule IV of APVAT Act, 2005 for the period October 2006 to February 2009. It is stated that the second respondent passed the order dated 20.5.2009 without considering the written objections made by the petitioner on 18.5.2009 and without granting an opportunity of personal hearing and assessed the turnover of Rs. 15,35,12,449/- @ 12.5.% and confirmed the tax of Rs. 1,30,48,558/- on the ground that the petitioner has effected sales of medicated goods which are products capable of being used as a cosmetic and toilet preparation. Aggrieved by the same, the petitioner preferred an appeal along with stay application before Appellate Deputy Commissioner, Secunderabad Division-third respondent and the same is pending. Subsequently the second respondent issued Arrear notice dated 16.9.2009 directing the petitioner to pay tax of Rs. 1,17,15,116/- for the period April, 2005 to September 2009 and October 2006 to March 2009 within three days, failing which coercive steps will be initiated for recovery of the demand without any further notice. Being aggrieved by the same, the present Writ Petition has been filed. Heard the learned counsel appearing for the petitioner and perused the material made available on record. Learned counsel appearing for the petitioner has drawn our attention to a Division Bench Judgment of this Court reported in ANAB-E-SHAHI WINES AND DISTILLERIES PRIVATE LIMITED VS. APPELLATE DEPUTY COMMISSIONER, SECUNDERABAD DIVISION, NAMPALLY, HYDERABAD AND OTHERS[1], wherein this Court observed as under: “In so many similar cases, we have held that so long as the interim order is not passed on the stay application by the appellate authority, such coercive methods to recover the amount of tax under the assessment order, which is the subject-matter of the appeal, are not proper. In spite of this, such proceedings are being initiated. Under the circumstances, we have no alternative but to quash the garnishee proceedings issued against the third and the fourth respondents and to restrain the second respondent from initiating any recovery proceedings against the petitioner pending disposal of its stay application before the appellate authority, i.e., the first respondent. Accordingly this writ petition is hereby finally disposed of.” Following the above judgment of this Court, this Writ Petition is also liable to be disposed of. In the circumstances, we deem it appropriate to direct the authority concerned not to take any coercive steps against the petitioner or initiate any recovery proceedings pending disposal of its stay application before the Appellate Deputy Commissioner-third respondent herein. Accordingly, the Writ Petition is disposed of. There shall be no order as to costs. _______________________ GHULAM MOHAMMED,J _________________________ G. BHAVANI PRASAD ,J 30.09.2009 KA ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1. 2 CD copies. [1] (1995) 098 STC 0386