IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY NINETH DAY OF AUGUST TWO THOUSAND AND EIGHT PRESENT THE HON'BLE SMT JUSTICE T.MEENA KUMARI and THE HON'BLE SRI JUSTICE P.V.SANJAY KUMAR WRIT PETITION NO : 18783 of 2008 Between: M/s. B. Seenaiah & Company (Projects) Limited, 6-2-913/914, 5th Floor, Progressive Towers, Khairatabad, Hyderabad - 500 004, Rep. by its Chairman, Mr. B. Krishnaiah. ..... PETITIONER AND 1 The Assistant Commercial Tax Officer, Khairatabad Circle, Hyderabad. 2 The Appellate Deputy Commissioner (CT), Punjagutta Division, Hyderabad. 3 The Additional Commissioner (CT) Legal, Andhra Pradesh, 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 a Writ of certiorari or any other appropriate writ or order or direction quashing the order of Sales Tax Appellate Tribunal in TMP No. 269 of 2008 in T.A.No. 478 of 2008 dated 1-8-2008 as arbitrary, illegal, onerous and unjustiﬁed and consequently direct the 1st Respondent not to take any coercive steps for recovery of disputed penalty of Rs.48,43,084/- levied for the year 2004-05 as per the order of the 3rd Respondent dated 7- 5-2008, pending disposal of the appeal in T.A.No. 478 of 2008 on the file of the Sales Tax Appellate Tribunal, Hyderabad. Counsel for the Petitioner:MR.S.DWARAKANATH 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 P.V. SANJAY KUMAR WRIT PETITION NO : 18783 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is ﬁled questioning the order, dated 1.8.2008 passed by the Sales Tax Appellate Tribunal in TMP No.269 of 2008 in T.A.No.478 of 2008 and seeking a direction to the 1st respondent not to take any coercive steps for recovery of the disputed penalty for the year 2004-05 as per the order of the 3rd respondent dated 7.5.2008, pending disposal of the appeal before the Tribunal. It is the case of the writ petitioner that aggrieved by the orders passed by the 3rd respondent, an appeal has been preferred before the Sales Tax Appellate Tribunal. Along with the appeal, the petitioner also ﬁled an application before the Tribunal seeking stay of collection of the penalty, pending disposal of the appeal. The Tribunal disposed of the application granting stay on condition of the petitioner paying 50% of the disputed penalty. The main grievance of the petitioner is that it is not in a position to pay any amount towards the disputed penalty and that the conditional order passed by the Tribunal is onerous. Heard the learned Counsel appearing 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 Tribunal and the same is pending and that the condition stipulated by the tribunal while granting stay, is onerous and the petitioner is unable to pay such huge amount and in the facts and circumstances of the case, if the unconditional stay is not granted and if the entire disputed penalty is recovered, the very purpose of filing the appeal would be defeated. In the facts and circumstances of the case and in view of the quantum of the penalty and in view of the fact that the appeal is pending before the Sales Tax Appellate Tribunal, 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 for the assessment year 2004-2005, pending disposal of the appeal before the Tribunal, subject to the condition of the petitioner depositing 1/4th (One Fourth) of the disputed penalty, within a period of three months from today. However, it is made clear that the penalty 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 P.V. Sanjay Kumar Date: 29th August, 2008 Note: Issue C.C. in one week. (BO) nn. THE HON'BLE SMT JUSTICE T.MEENA KUMARI and THE HON'BLE SRI JUSTICE P.V. SANJAY KUMAR WRIT PETITION NO : 18783 of 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 29/08/2008