IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY EIGHTH DAY OF MAY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE L.NARASIMHA REDDY and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 11460 of 2008 Between: M/s. S.C. Johnson Products Private Limited, (since merged with TOC Disinfectants Limited & Hindustan Lever Limited), presently known as Hindustan Unilever Limited, Survey No. 129/2, Kandalkoya village, Medchal-501 401, Ranga Reddy district represented by its Assistant Manager (Legal), Mr. G. S. Srinivasa Rao ..... PETITIONER AND 1) The Commercial Tax Officer, Hydernagar, Hyderabad, 2) The Appellate Deputy Commissioner (CT), Hyderabad Rural Division, Hyderabad. 3) The Joint Commissioner (CT), Legal, Andhra Pradesh, Hyderabad, AP. .....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 a writ of mandamus or any other appropriate writ or order or direction declaring the action of the 1st respondent in insisting for payment of the disputed penalty amount through notice dated 13.5.2008 and contemplating to take coercive steps in pursuance of the dismissal of appeal by the 2nd respondent even during pendency of second appeal before the Hon’ble Sales Tax Appellate Tribunal as illegal, arbitrary, high handed and restrain the 1st respondent from taking any coercive steps for recovery of the balance disputed penalty amount of Rs.9,00,803/- out of the disputed penalty of Rs.12,01,071/- for the assessment year 2002-03, pending disposal of the appeal before the Hon’ble Sales Tax Appellate Tribunal. Counsel for the Petitioner: MR.BHASKAR REDDY VEMIREDDY Counsel for the Respondents: GP FOR COMMERCIAL TAX The Court made the following : THE HON’BLE SRI JUSTICE L. NARASIMHA REDDY AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN W.P.NO. 11460 OF 2008 ORDER: (Per Hon’ble Sri Justice Ramesh Ranganathan) Petitioner is a registered dealer on the rolls of the 1st respondent under the Andhra Pradesh General Sales Tax Act, 1956 (for short “the Act”). The petitioner was assessed to tax by order dated 6.12.2005. Aggrieved thereby, the petitioner preferred an appeal before the 2nd respondent. Pending appeal, the petitioner sought stay of collection of disputed penalty. The 2nd respondent, by order dated 28.11.2006, dismissed the stay application. Aggrieved thereby, the petitioner sought revision under Section 19 (2) (b) of the Act before the 3rd respondent. The 3rd respondent dismissed the revision petition by order dated 7.2.2007. Aggrieved thereby, the petitioner filed W.P.No. 4039 of 2007 before this Court. This Court, while disposing of the writ petition by order dated 1.3.2007, granted stay of recovery of the disputed penalty on the condition that the petitioner deposits 25% of the disputed penalty within a period of four weeks. The petitioner claims to have complied with the order of this Court dated 1.3.2007. While matters stood thus, the 2nd respondent dismissed the appeal by order dated 23.4.2008. Aggrieved thereby, the petitioner preferred an appeal before the Sales Tax Appellate Tribunal against the order levying penalty and the appeal is still pending. Since the Tribunal has no power to grant stay, the petitioner has invoked the jurisdiction of this Court. Since recovery of the entire disputed penalty would render the appeal pending before the Tribunal a mere formality, we consider it appropriate to grant stay of collection of the disputed penalty subject to condition that the petitioner pays 25% of the disputed penalty pending disposal of the appeal by the Tribunal. The petitioner claims to have already paid 25% of the disputed amount. If 25% of the disputed penalty has already been paid, then pending disposal of the appeal by the Sales Tax Appellate Tribunal, no coercive steps shall be taken by the respondents for recovery of the remaining disputed penalty. The writ petition is disposed of accordingly. No order as to costs. _____________________ L. NARASIMHA REDDY, J _________________________ RAMESH RANGANATHAN, J Dt.28.5.2008 Note: CC of order be furnished in three days. /BO/ Kr/asp ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1) The Commercial Tax Officer, Hydernagar, Hyderabad, 2) The Appellate Deputy Commissioner (CT), Hyderabad Rural Division, Hyderabad. 3) The Joint Commissioner (CT), Legal, Andhra Pradesh, Hyderabad, AP. 4) 2 CCs to GP for Commercial Tax 5) 2 CD copies Form-NIC-OGS/WP{ }