IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY SIXTH DAY OF MARCH TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE B.PRAKASH RAO and THE HON'BLE MR JUSTICE C.Y.SOMAYAJULU WRIT PETITION NO : 6441 of 2008 Between: M/s. Madhavi-Agencies, Rajam, Srikakulam District, rep by its Managing Partner, Mr. G. Mohan Rao ..... PETITIONER AND 1 The Commercial Tax Officer, Rajam, Srikakulam District. 2 The Appellate Dy. Commissioner of Commercial Taxes, Visakhapatnam 3 the Joint Commissioner of Commercial Taxes (Legal), A.P. O/o the Commissioner (CT), Commercial Taxes Complex, Station Rd. Nampally, Hyderabad 4 The Sales Tax Appellate Tribunal, Visakhapatnam Bench, Visakhapatnam, rep by its Secretary. .....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 issue an appropriate writ, order or direction, preferably one in the nature of a Writ of Mandamus, declaring the impugned notice in Form VAT.206, dt 14-3-2008 issued by the 1st respondent on the Bankers of the petitioner M/s. UTI Bank, Ramnagar Branch, Visakhapatnam (a copy of which was served on the petitioner on 18-3-2008) calling upon the bankers to pay the outstanding amount of Rs. 3,52,539/- within 7 (Seven) days from the date of receipt of the said notice in respect of the assessment year 2005-2006 under VAt Asct inclusive of penalty and interest, as illegal, arbitrary, unwarranted besides being quite contrary to the provisions of the APVAT Act, 2005 as well as authoritative Pronouncement of this Hon'ble Court reported in 43 APSTJ, Pg,. 27 and pass such other order or orders as this Hon'ble Court may deem fit and proper in the circumstances of the case and in the interest of justice. Counsel for the Petitioner:MR.A.K.JAISWAL Counsel for the Respondents: SRI K.RAJI REDDY, SPECIAL STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : THE HON'BLE MR JUSTICE B.PRAKASH RAO AND THE HON'BLE MR JUSTICE C.Y.SOMAYAJULU WRIT PETITION No.6441 of 2008 ORDER: (Per Hon’ble Sri Justice B.Prakash Rao) Heard Sri S.Krishna Murthy, learned Counsel for the petitioner and Sri K. Raji Reddy, learned Special Standing Counsel for Commercial Tax, who takes notice on behalf of the respondents, and at their request, the main writ petition itself is taken up for disposal. 2. The petitioner herein is aggrieved against the orders of not grating stay and issuing garnishee notice pending substantive appeal on the file of the Sales Tax Appellate Tribunal. 3. Having heard the learned Counsel and on perusal of the material on record, since substantial appeal is pending involving several substantial questions, we are refraining from expressing any opinion on the merits of the case, but it is suffice, in the interest of justice, to grant stay subject to certain conditions. 4. This writ petition is disposed of granting stay pending disposal of the appeal, on a condition of the petitioner depositing half of the disputed tax within a period of six weeks from today. The amounts, if any, paid already shall be given credit to. The impugned garnishee notice shall stand suspended till the disposal of the appeal. The appeal shall be disposed of on merits after giving notice and opportunity. __________________ B.PRAKASH RAO, J. __________________ C.Y.SOMAYAJULU, J. Date:26.03.2008. GS ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{TRT}