HONOURABLE MRS. JUSTICE T.MEENA KUMARI & HONOURABLE MS JUSTICE G. ROHINI WRIT PETITION No:2192 OF 2008 Dated:07.02.2008 Between: M/s. Hydro Pneumatics Rep., by its Managing Partner Najmuddin A. Badri. ..Petitioner And 1. The Commercial Tax Officer, Suryabagh Circle, Visakhapatnam and another. ..Respondents. HONOURABLE MRS. JUSTICE T.MEENA KUMARI & HONOURABLE MS JUSTICE G. ROHINI WRIT PETITION No:2192 OF 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) The present writ petition is filed by the petitioner seeking to declare the action of the 1st respondent in issuing the garnishee notice dated 22.01.2008 to the 2nd respondent as illegal and arbitrary and consequently, to grant stay of collection of disputed demand for the assessment year 2003-2004 (CST), pending disposal of the appeal before the Sales Tax Appellate Tribunal, Additional Bench, Visakhapatnam. The main grievance of the petitioner is that an appeal has been preferred before the Sales Tax Appellate Tribunal aggrieved by the proceedings of the Appellate Deputy Commissioner, Commercial Taxes, Visakhapatnam. The petitioner has filed an application before the Joint Commissioner, Commercial Taxes (Legal), Hyderabad seeking stay of collection of the disputed tax. While so, the 1st respondent issued the garnishee notice dated 22.1.2008. Having aggrieved by the same, the present writ petition is filed by the petitioner. 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 an appeal filed before the Sales Tax Appellate Tribunal and the stay application filed before the Joint Commissioner, Commercial Taxes, are pending and at this stage, the issuance of the garnishee notice is contrary to law and therefore, the impugned garnishee notice is liable to be set aside. In the facts and circumstances of the case and in view of the pendency of the appeal before the Sales Tax Appellate Tribunal, without expressing any opinion on the merits of the case, We feel it a fit case wherein stay can be granted, but subject to imposition of certain conditions. At this stage, it is the contention of the learned Counsel for the petitioner that if the garnishee notice is not revoked, it is much difficult to operate the account to meet the regular transactions and also to comply with the order of this Court. In view of the above submission, We deem it appropriate to revoke the garnishee notice so as to enable the petitioner to continue the operation of the account and comply with the conditions that would be imposed while granting stay by this Court. Accordingly, the impugned garnishee notice be revoked. There shall be interim stay of recovery of the disputed tax till the disposal of the appeal pending before the Sales Tax Appellate Tribunal subject to the condition of the petitioner depositing 50% of the disputed tax within a period of six (6) weeks from today. However, it is made clear that the amount paid if any, shall be given credit to the above stipulated sum. It is further made clear that in case of non-compliance of the above order, the garnishee notice becomes operative. Subject to the above direction, the writ petition is disposed of. No order as to costs. ________________________ Justice T. Meena Kumari _________________ Justice G. Rohini Date: 7th February, 2008 Note: Communicate by wire At partys costs. (BO) Nn/Gurc. HONOURABLE MRS. JUSTICE T.MEENA KUMARI & HONOURABLE MS JUSTICE G. ROHINI WRIT PETITION No:2192 OF 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 07/02/2008