IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE FOURTEENTH DAY OF AUGUST TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE P.V.SANJAY KUMAR WRIT PETITION NO : 17796 of 2008 Between: M/s. Berger Paints (India) Ltd., Sy.No.133, Plassey Lanes, MBN Reddy Estate, Malla Reddy Gardens, Boinpally, Secunderabad, rep. by its Administrative Officer, G. Srinivasa Rao. ..... PETITIONER AND 1 The Commercial Tax Officer, Osmangunj Circle, Hyderabad 2 The Appellate Deputy Commissioner (CT), Punjagutta Division, 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 order or direction more particularly one in the nature of writ of mandamus declaring the action of the 2nd respondent in dismissing the stay application ﬁled by the petitioner for the tax periods 2005-06, 2006-07 and 2007-08 under the APVAT Act through the impugned proceedings dated 24.07.2008 as illegal, arbitrary, high handed and to set aside the same and restrain the 1st respondent from taking any coercive steps for recovery of the disputed penalty of Rs.4,32,786/- for the tax periods 2005-06, 2006-07 and 2007-08 under the APVAT Act pending disposal of the appeal before the 2nd respondent. Counsel for the Petitioner:MR.BHASKAR REDDY VEMIREDDY Counsel for the Respondents.: SRI A.V. KRISHNA KOUNDINYA, SPECIAL STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : . THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE P.V. SANJAY KUMAR WRIT PETITION NO : 17796 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is ﬁled by the petitioner seeking to declare the action of the 2nd respondent in dismissing the stay application, vide order dated 24.7.2008, as illegal and arbitrary, and to set aside the same, and to restrain the 1st respondent from taking any coercive steps for recovery of the disputed penalty of Rs.4,32,786/- for the tax periods 2005-06, 2006-07 and 2007-08, pending disposal of the appeal before the 2nd respondent. It is the case of the petitioner that against the orders passed by the 1st respondent levying penalty, the petitioner ﬁled an appeal as well as a stay application before the 2nd respondent. But the 2nd respondent dismissed the stay application. Taking advantage of the same, the 1st respondent is insisting for payment of the disputed penalty. Hence, the present writ petition has been 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 the petitioner has preferred an appeal before the 2nd respondent challenging the order of penalty passed by the 1st respondent and the same is pending and at this stage, if the relief of stay is not granted and if the entire disputed penalty is recovered, the very purpose of ﬁling the appeal would be defeated. In the facts and circumstances of the case and in view of the fact that the appeal is pending 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 certain conditions. Accordingly, there shall be stay of recovery of the penalty in question, pending disposal of the appeal before the 2nd respondent, subject to the condition of the petitioner depositing 25% of the disputed penalty, within a period of six weeks from today. However, it is made clear that the penalty amount paid, if any, 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 P.V. Sanjay Kumar Date: 14th August, 2008 nn/gurc. THE HON'BLE SMT JUSTICE T.MEENA KUMARI and THE HON'BLE SRI JUSTICE P.V. SANJAY KUMAR WRIT PETITION NO : 17796 of 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 14/08/2008