IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY SECOND DAY OF FEBRUARY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE DR. JUSTICE G.YETHIRAJULU WRIT PETITION NO : 3767 of 2008 Between: M/s. Sigmund Promedica, Seetarampuram, Vijayawada, Krishna District, rep. by its Manager, Mr.V.Babu. ..... PETITIONER AND 1 The Commercial Tax Officer, Seetharampuram, Vijayawada. 2 Joint Commissioner (CT) Legal, Office of the Commissioner (CT), A.P., Hyderabad. .....RESPONDENT(S) 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 to issue an appropriate writ or order or direction declaring the action of the 1st respondent in insisting upon balance 50% of the disputed tax out of total disputed demand of Rs.6,04,160/- for the assessment year 2003-04, when pending appeal before the Hon'ble Sales Tax Appellate Tribunal, Additional Bench, Visakhapatnam as arbitrary, contrary to law, and in violation of principles of natural justice and consequently grant stay of collection of balance disputed demand of 50% pending disposal of the appeal before the Hon'ble Sales Tax Appellate Tribunal, Additional Bench, Visakhapatnam in T.A.No.102/08 and pass such other order or orders. Counsel for the Petitioner: MR.SHAIK JEELANI BASHA Counsel for the Respondent No.: GP FOR COMMERCIAL TAX The Court made the following : ORAL ORDER(Per the Hon’ble Smt. Justice T. Meena Kumari) Seeking a writ of mandamus declaring action of the respondents in insisting upon payment of balance of 50% of the disputed tax out of total disputed demand of Rs.6,04,160/- for the assessment year 2003-2004, pending Appeal before the Sales Tax Appellate Tribunal, Additional Bench, Visakhapatnam as illegal and arbitrary and to consequently grant stay of collection of balance disputed demand of 50%, pending disposal of the appeal, TA No. 102/08, the petitioner filed this appeal. The petitioner is a proprietary concern carrying on business in drugs and medicines and is a registered dealer on the rolls of the first respondent herein. For the assessment year 2003-2004, the first respondent completed the assessment by order dated 3.2.2006 rejecting claim of the petitioner that the medicines sold by the petitioner are secondary sales and not liable to tax under the Act. Assailing the same, the petitioner filed appeal before the Appellate Deputy Commissioner (CT), Vijayawada, who by order dated 4.11.2006 dismissed the Appeal. Aggrieved thereby, the petitioner filed an appeal before the Sales Tax Appellate Tribunal, Additional Bench, Visakhapatnam in TA No. 102/08,which is pending. The petitioner also filed stay petition before the second respondent, which is pending, and since the first respondent is threatening to take coercive steps for recovery of the disputed tax, the petitioner filed this writ petition. It is submitted by the learned counsel for the petitioner that though several contentions are raised before the second respondent, he may refuse to grant stay and dismiss the same in a routine way. It is submitted since there is no stay, the first respondent is threatening to take coercive steps to recover the disputed tax. Heard the learned counsel for the petitioner and the learned Special Standing Counsel for Commercial Taxes. In the facts and circumstances of the case, we are of the opinion that the writ petition can be disposed of at the stage of admission directing the petitioner to deposit half of the disputed tax amount within a period of six weeks from today and the respondents are directed not to take coercive step for recovery of the tax, pending finalisation of the appeal by the Appellate Authority, which is subject matter of dispute in the Appeal before the Appellate Authority. It is made clear that the amount paid, if any, shall be given credit to the above stipulated sum. With these directions, the writ petition is disposed of. No order as to costs. ____________________ T.MEENA KUMARI, J. _____________________ Dr.G.YETHIRAJULU, J. February 22, 2008 MAS .... REGISTRAR // TRUE COPY // SECTION OFFICER To 1 The Commercial Tax Officer, Seetharampuram, Vijayawada. 2 Joint Commissioner (CT) Legal, Office of the Commissioner (CT), A.P., Hyderabad. 3, 1CCs to Shaik Jeelani Basha, Advocate 4. 2 CCs to The Spl. SC for Commercial Taxes 5. 2CD copies