IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TWENTY 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 : 15908 of 2008 Between: M/s. J.P. Print Systems (P) Ltd. Flat NO. 112 & 113, Nelgiri Block, Aditya Enclave, Ameerpet, Hyderabad Rep. by its Managing Director Mr. Mathews Peter ..... PETITIONER AND 1 The Additional Commissioner of Commercial Taxes (CT) (Legal) O/o. The Commissioner of Commercial Taxes 2nd Floor, Nampally, Hyderabad. 2 The Appellate Deputy Commissioner (CT) Punjagutta Division, Myur Kushal Towers, Hyderabad. 3 The Deputy Commercial Tax Officer, Punjagutta Circle, Mayur Kushal Towers, Abids, Hyderabad. .....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 or direction more particularly one in the nature of writ of Mandamus by setting aside the impugned Proceedings Order No. LIII(2)/374/2008 dt. 6-5-2008 issued by the 1st Respondent as illegal, unjustified and contrary to the provisions of law in the facts and circumstances of the case. Counsel for the Petitioner: MR.J.V.RAO 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 proceedings dated 06.05.2008 passed by the first respondent refusing to stay the collection of disputed tax, penalty and interest for the periods 2005- 2006 to December, 2007 as illegal and arbitrary and consequently to direct the respondents not to collect the disputed amount of tax, penalty and interest, pending appeal before the second respondent, the petitioner filed this writ petition. The petitioner is a Limited Company incorporated under the Companies Act, engaged in the business of publication and sale of EAMCET Books and other publications and is an assessee on the rolls of the Commercial Tax Officer, Sanathnagar Circle, Hyderabad. While so, the third respondent herein issued show cause notice in Form 305A proposing to levy tax, penalty and interest inasmuch as the petitioner made payments to the Authors of the books towards royalty holding copy right, to which the petitioner submitted detailed reply. However, the third respondent has levied tax of Rs.98,322/-, penalty of Rs.24,580/- and interest at Rs.9,463/-. Aggrieved thereby, the petitioner preferred an appeal before the second respondent. Along with the appeal, the petitioner also filed stay petition, which was rejected by the second respondent. Aggrieved thereby, the petitioner filed a stay petition before the first respondent, who also rejected the same in a routine course, vide the order impugned. Consequent to the said rejection by the first respondent, the third respondent is contemplating coercive steps for recovery of the disputed tax, penalty and interest and, therefore, 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 pending appeal, taking coercive steps for recovery of the disputed tax, penalty and interest 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 50% of the demanded tax, 25% of the penalty and interest. Accordingly, the writ petition is disposed at the stage of admission, directing the petitioner to deposit 50% of the demanded tax amount, 25% of the penalty and interest, within a period of six weeks from today and the respondents are directed not to take coercive steps for recovery of the balance amount pending appeal. The deposit of amounts shall be without prejudice to the rights of the petitioner in appeal. If any amounts have 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 24, 2008 MAS ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{VSMI}