IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWELFTH DAY OF SEPTEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE SMT JUSTICE T.MEENA KUMARI and THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 19801 of 2008 Between: M/s.Jay Ambe Enterprises, Plot No.7-2-B12,Industrial Estate, Sanathnagar, Hyderabad-500018 rep.by its Partner Mr.Narendra Kumar Patel ..... PETITIONER AND 1 The Appellate Deput Commissioner (CT) Hyderabad Rural Divison, Hyderabad 2 The Dy.Commercial Tax officer, IDA,GandhiNagar Circle, 2nd floor, Gagan vihar, Nampally, Hyderabad 3 The Commercial Tax officer, Fathenagar circle Hyderabad .....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 writ of mandamus or any other appropriate writ or order or direction declaring the action of the 1st respondent in rejecting the stay application by proceedings dated 4.9.2008 for the period 1.6.2006 to 31.3.2007 without considering the contentions of the petitioner much less not even referring them in the order as arbitrary, contrary to the provisions of the Act and in violation of principles of natural justice and Rule of Law and the penalty and interest proceedings of the 2nd respondent dated 11.7.2008 passed under Rule 59 of AP VAT Rules is ultra vires to section 2(4) of the AP VAT Act and consequently set aside the same as null and void and grant stay of collection of disputed penalty of Rs.1,13,729/- and interest of Rs.72,454/- for the period 1.6.2006 to 31.3.2007 pending disposal of the appeal before the 1st respondent. Counsel for the Petitioner: SRI.SHAIK JEELANI BASHA Counsel for the Respondents.: SPL. STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : THE HON'BLE SMT JUSTICE T.MEENA KUMARI and THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 19801 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is ﬁled seeking to grant stay of collection of the disputed penalty of Rs.1,13,729/- and interest of Rs.72,454/- for the period from 1.6.2006 to 31.3.2007, pending disposal of the appeal before the 1st respondent. It is the case of the petitioner that aggrieved by the order passed by the 2nd respondent levying penalty & interest, an appeal has been preferred before the 1st respondent and the same is pending. Along with the appeal, the petitioner ﬁled an application seeking stay of collection of the disputed demand pending disposal of the appeal. But the 1st respondent rejected the stay application. Hence, the present writ petition has been filed. Heard the learned Counsel 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 1st respondent and the same is pending and that the stay petition moved before the 1st respondent was rejected and pursuant to the same, the 2nd respondent may initiate coercive steps and in these circumstances of the case, if the stay is not granted and if the disputed penalty and interest are collected, the very purpose of ﬁling the appeal would be defeated. In the facts and circumstances of the case and in view of the fact that the appeal is pending before the 1st 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 penalty and interest for the period in question, pending disposal of the appeal before the 1st respondent, subject to the condition of the petitioner depositing 25% of the disputed penalty and interest, within a period of eight 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: 12th September, 2008 Nn/gurc. THE HON'BLE SMT JUSTICE T.MEENA KUMARI and THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No:19801 OF 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 12/09/2008