IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY SEVENTH DAY OF JUNE TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 13618 of 2008 Between: M/s. Delux Service Station, Kadapa, Rep by its Mg. Partner, L. Vijayabhaskar Reddy, S/o. Ella Reddy, aged 36 years, Almaspet, Kadapa, Kadapa District. ..... PETITIONER AND 1 The Government of Andhra Pradesh, Rep by its Secretary, Commercial Tax Department, Secretariat Buildings, Hyderabad. 2 The Commercial Tax Officer-II, Kadapa, Kadapa District. 3 Vijaya Bank, Seven Roads, Kadapa, Rep by its Branch Manager. .....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 or order or direction more particularly one in the nature of Writ of Mandamus declaring issuing section 17 notice under APGST Act, 1957 dated 25-4-2007 for recovery of penalty by the 2nd respondent to the petitioner Banker 3rd respondent herein attachment of petitioner's Bank Account as illegal and arbitrary when the Tax Appeal No. 583/2007 is pending and also to direct the respondents not to collect the penalty as the petitioner filed required certificates of charged Accountant to the 2nd respondent. Counsel for the Petitioner:MR.K.V.UPENDRA GUPTA Counsel for the Respondents: SPECIA.L STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 13618 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is filed by the petitioner seeking to declare the issuance of notice under section 17 of the A.P.G.S.T. Act, dated 25.4.2007 for recovery of the penalty by the 2nd respondent during the pendency of the appeal vide appeal No:583 of 2007, as illegal and arbitrary and consequently, to direct the respondents not to collect the penalty. The main grievance of the petitioner is that aggrieved by the penalty proceedings of the 2nd respondent as well as the order of the appellate authority-Deputy Commissioner (CT), Kurnool, an appeal was preferred before the Sales Tax Appellate Tribunal vide appeal No:583 of 2007. Even during the pendency of the appeal, 2nd respondent has resorted to issue notice under section 17 of the Act. Hence, the petitioner filed the present writ petition. Heard the learned Counsel appearing for the petitioner and the learned Special Standing Counsel for Commercial Tax and perused the material available on record. In the facts and circumstances of the case and in view of the pendency of the appeal before the Sales Tax Appellate Tribunal, without expressing any opinion on the merits of the case, We feel it just and proper to grant stay of collection of the penalty, but on certain conditions. Accordingly, there shall be stay of collection of the penalty in question, subject to the condition of the petitioner paying 25% of the penalty amount demanded, within a period of six weeks from today. It is made clear that the penalty amount, if any already paid, shall be given credit to the above stipulated sum. With the above direction, the writ petition is disposed of. No order as to costs. ________________________ Justice T. Meena Kumari ___________________________ Justice Ramesh Ranganathan Date: 27th June, 2008 Nn/gurc. THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION No:13618 OF 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 27/06/2008