IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION NO : 9820 of 2010 Dated: 27.4.2010 Between: M/s. Kamadhenu Wire, rep., by its Branch Manager K. Mukunda Sekhar ..... PETITIONER AND 1 The Commercial Tax Officer, Begumpet Circle, Hyderabad and another. .....RESPONDENTS The Court made the following : THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION NO : 9820 of 2010 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is filed seeking to declare the action of the 1st respondent in demanding payment of penalty for the period August, 2007 to December, 2007 during the pendency of the appeal before the Sales Tax Appellate Tribunal, Hyderabad, as illegal and arbitrary and consequently, to direct the 1st respondent not to collect the disputed penalty during the pendency of the appeal before the Tribunal. The case of the petitioner is that questioning the order passed by the 1st respondent levying penalty, it had preferred second appeal before the Sales Tax Appellate Tribunal and the same is pending. Now, the authorities are insisting for payment of the disputed penalty. 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 appeal preferred by the petitioner is pending before the Tribunal and the authorities are insisting for payment of the disputed penalty and in these circumstances, if the stay is not granted and the 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 fact that the appeal is pending, 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, pending disposal of the appeal before the Tribunal, subject to the condition of the petitioner depositing 25% of the disputed penalty, within a period of six weeks 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 Nooty Ramamohana Rao Date: 27th April, 2010 nn. THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION NO :9820 of 2010 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 27/04/2010