IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE NINETEENTH DAY OF FEBRUARY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE SMT. JUSTICE T.MEENA KUMARI and THE HON'BLE Ms. JUSTICE G.ROHINI WRIT PETITION NO : 3311 of 2008 Between: M/s. Srinivasan Associates (P) Limited, S.No.383 - 388/55, Chinnaguddempalli, M.Beerapalli, Hindupur, rep. by its Managing Director, Sri.G.Srinivasan. ..... PETITIONER AND 1 The Commercial Tax Officer, Hindupur. 2 The Deputy Commercial TAx Officer, Tadipatri - Kadiri Circle, Tadipatri. 3 The Appellate Deputy Commissioner (CT) Kurnool. 4 M/s. Super Spinning Mills Limited, Hindupur. .....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 particularly one in the nature of Writ of Mandamus granting stay of collection of the disputed tax of Rs.31,83,511/- arising in pursuance of the Assessment of Value Added Tax in Form Vat 305, dated 13.11.2007, issued by the second respondent for the assessment period 2006-07 pending disposal of the appeal before the third respondent or to pass such further or other orders. Counsel for the Petitioner: MR.S.KRISHNA MURTHY Counsel for the Respondent Nos.1 to3:Sri K. Raji Reddy, Special S.C. for Commercial Taxes The Court made the following : THE HON'BLE SMT. JUSTICE T. MEENA KUMARI AND THE HON’BLE MS. JUSTICE G. ROHINI WRIT PETITION No.3311 of 2008 ORDER : (Per Hon’ble Smt. Justice T. Meena Kumari) Heard learned Counsel for the parties. With their consent, the Writ Petition is being disposed of at this stage. The petitioner-company filed the present writ petition seeking a writ of mandamus granting stay of collection of the disputed tax of Rs. 31,83,511/- arising in pursuance of the assessment of Value Added Tax in Form VAT 305, dated 13.11.2007, issued by the second respondent for the assessment year 2006-2007 pending disposal of the appeal by the third respondent. The facts in brief are that the petitioner who is a works contractor is an assessee under the A.P.VAT Act and is registered on the rolls of the first respondent. While so, the 2nd respondent passed the assessment order on 23.7.2007 levying tax of Rs. 31,83,511/- for the assessment year 2006-07. Questioning the same, petitioner filed an appeal before the third respondent. Along with the appeal, he also filed a stay petition seeking stay of collection of tax. The grievance of the petitioner is that even when the appeal filed by the petitioner is pending before the Appellate Deputy Commissioner (CT), Kurnool, Kurnool, the 3rd respondent herein, the first respondent issued the impugned garnishee notice dated 14.2.2008 directing him to pay a sum of Rs.9,65,470-00 towards tax and interest for the assessment year 2006-2007. Hence, he filed the present writ petition. Learned counsel for the petitioner contends that even when the appeal filed by the petitioner is pending consideration before the 3rd respondent, the 1st respondent has issued the impugned garnishee notice demanding the disputed tax. He further submits that since the petitioner has already paid an amount of Rs. 22,47,373/- as against Rs. 31,83,511/-, leaving a balance of Rs. 9,36,138/-, the 1st respondent was not justified in issuing the impugned garnishee notice. He, therefore, prayed that the writ petition be allowed and the impugned order be set aside. We have gone through the record. We feel that the interests of justice would have been met if stay was granted pending appeal, subject to deposit of 50% of the disputed tax liability. Therefore, we quash the impugned garnishee notice dated 14.2.2008 and direct the petitioner to pay 50% of the disputed tax liability within a period of six weeks from today. 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 to. The Writ Petition is disposed of accordingly. No costs. ___________________ T. MEENA KUMARI,J DATE: 19th February, 2008 ______________ G. ROHINI, ,J Note: Communicate the operative portion by wire at party’s costs. B/o pnb To 1 The Commercial Tax Officer, Hindupur. 2 The Deputy Commercial Tax Officer, Tadipatri - Kadiri Circle, Tadipatri. 3 The Appellate Deputy Commissioner 4. 2 CCs to the Special Standing Counsel for Commercial Taxes 5. 2CD copies // TRUE COPY // SECTION OFFICER