IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE FOURTH DAY OF JULY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI AND THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 14238 of 2008 Between: M/s. Habeeb Enterprises, D. No. 51046, Mantralayam Road, Yemmiganur, Kurnool District, A.P. Rep. by its Proprietor Sri Mahaboob Basha ..... PETITIONER AND 1 The Appellate Deputy Commissioner (C.T), Kurnool Division, D.No. 53254/D8, Near Bhashyam School, Sankalbagh, N.R.Pet, Kurnool. 2 The commercial Tax Officer, Adoni-I Circle, III Road, SKD Colony, Adoni, Kurnool District. .....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 an appropriate writ, order or direction more particularly in the nature of Mandamus holding that the impugned stay Rejection order passed by the First Respondent dated 852008 in Stay Petition no. 3/2008-2009 (KNL) in Appeal No. 145/20072008 (KNL) as illegal and unsustainable and consequently to grant stay of collection of the disputed Penalty of Rs.3,92,17200 for the tax Period June 2005 to May 2006 (Penalty) pending disposal of the said Appeal before the first respondent and pass Counsel for the Petitioner: MR.G.NARENDRA CHETTY Counsel for the Respondent No.: GP FOR COMMERCIAL TAX The Court made the following : ORAL ORDER: (per THE HON’BLE MRS. JUSTICE T.MEENA KUMARI) Seeking a writ of mandamus, declaring the order dated 8.5.2008 passed by the first respondent in Appeal No. 145/2007-2008(KNL) refusing to grant stay as illegal and arbitrary and consequently to grant stay of collection of the disputed penalty of Rs.3,92,172/- for the period from June, 2005 to May, 2006, pending appeal, the petitioner filed this writ petition. The petitioner is a registered dealer on the rolls of the Second respondent under the A.P. Value Added Tax Act, 2005 and is engaged in the business of groundnuts and groundnut seeds, sale of which, according to petitioner is exempted from the tax. While so, the second respondent passed Assessment Order exempting on turnover relating to groundnut seeds sold to the A.P. Cooperative Oil Seeds Growers Federation Limited, but levied tax on the turnover relating to the sales to the farmers for sowing purpose and also imposed penalty equal to the tax, apart from levying interest, which was appealed against by the petitioner before the first respondent. Along with the appeal, the petitioner also filed stay petition, which was rejected vide the order impugned. The petitioner, aggrieved thereby, filed the present writ petition is filed. Heard the learned counsel for the petitioner and the learned Special Standing Counsel for the respondents. It is submitted by the learned counsel for the petitioner that pursuant to the rejection of the stay petition, the second respondent has issued demand notice dated 25.6.2008 demanding payment of the disputed penalty, and, therefore, pending appeal, the issuance of notice demanding to pay the penalty is contrary to law. We have gone through the record. We feel that the interest of justice would have been met if stay was granted pending Appeal, subject to the condition of the petitioner depositing 25% of the penalty. Accordingly, the writ petition is disposed of directing the petitioner to deposit 25% of the penalty within a period of eight weeks from the date of receipt of a copy of this order and the respondents are directed not to take coercive steps for recovery of the balance amount pending appeal. The deposit of amount shall be without prejudice to the rights of the petitioner in appeal. If any amount has already been paid by the petitioner, the same shall be given credit. The writ petition is accordingly disposed of. No costs. ____________________ Justice T.Meena Kumari ________________________ Justice Ramesh Ranganathan. July 4, 2008 Copy by 8.7.2008 //BO// MAS ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{KSRANI}