IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE NINETEENTH DAY OF JUNE TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 12767 of 2008 Between: M/s. Escorts Construction Equipment Limited, Plot No. 43, Lane to Ratnadeep Supermarket, Vijaynagar Colony, Vikrampuri, Secunderabad - 500 009, Rep. by its Chief Manager (Sales), Sri P. Chandra Sekar. ..... PETITIONER AND 1 The Assistant Commissioner (CT) LTU, Saroornagr Division, Hyderabad. 2 The Appellate Deputy Commissioner (CT), Hyderabad Rural Division, Hyderabad. 3 The Manager, Indus Ind Bank, Secunderabad. .....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.41.38.825/- for the assessment year 2004-2005 (APGST) (Final) arising in pursuance of the final assessment order passed by the first respondent dt. 29-03-2008 read with Garnishee notice dated 16-06-2008 in Ref.No. AJ-1/LTU.OA/07 issued by the first respondent under Section 29 of the APVAT Act, 2005 pending disposal of the appeal in Appeal No. A/S/51/2008-09, before the Second respondent. Counsel for the Petitioner: MR.S.KRISHNA MURTHY Counsel for the Respondents: SPECIAL STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 12767 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) The present writ petition is filed by the petitioner seeking to grant stay of collection of the disputed tax of Rs.41.38.825/- for the assessment year 2004-2005 (APGST), in pursuance of the final assessment order passed by the first respondent on 29-03-2008 read with Garnishee notice dated 16-06-2008, pending disposal of the appeal before the Second respondent. The main grievance of the petitioner is that aggrieved by the assessment order passed by the 1st respondent, an appeal and an application seeking stay of collection of the disputed tax have been filed before the 2nd respondent and the same are pending disposal. While so, the 1st respondent issued the garnishee notice to the bankers of the petitioner-company. Hence, the petitioner filed the present writ petition. Heard the learned Counsel for the petitioner and the learned Standing Counsel for Commercial Tax and perused the material available on record. The learned Counsel for the petitioner contended that against the assessment order passed by the 1st respondent, an appeal and the stay application have been filed and the same are pending disposal and at this juncture, if the relief as to the stay of the collection of the disputed tax is not entertained and if the recovery of the balance disputed tax in question is effected during the pendency of the appeal before the 2nd respondent, the very purpose of filing the said appeal, which is a statutory remedy that is available to the aggrieved party, would be defeated. In the facts and circumstances of the case and in view of the pendency of the appeal before the 2nd respondent, 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. Accordingly, there shall be stay of recovery of the disputed tax for the assessment year 2004-05, till disposal of the appeal pending before the 2nd respondent 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, if any already paid, shall be given credit to the above stipulated sum. Subject to the above direction, the writ petition is disposed of. No order as to costs. ________________________ Justice T. Meena Kumari ___________________________ Justice Ramesh Ranganathan Date: 19th June, 2008 Nn. THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION No:12767 OF 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 19/06/2008