IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TWENTIETH DAY OF NOVEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE B.SESHASAYANA REDDY WRIT PETITION NO : 25431 of 2008 Between: M/s. SPRY Resources India Private Limited, 6-3-1192, 4th Floor, Myhome Tycoon, Begumpet, Hyderabad - 500 016, Rep. by its Managing Director, Mr. P. Gurukrishna. ..... PETITIONER AND 1 The Commercial Tax Officer, Basheerbagh Circle, Hyderabad. 2 The Deputy Commissioner (CT), Abids Division, Hyderabad. 3 The Joint Commissioner (CT) Legal, Andhra Pradesh, 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 a Writ of Certiorari or any other appropriate Writ or order or direction quashing the order of the 3rd Respondent in CCT's Ref.No. LIII(1)/674/2008, dated 14-10-2008 as illegal, arbitrary and contrary to law and consequently restrain the 1st Respondent from taking any coercive steps for recovery of disputed tax of Rs. 7.22,332/- pending disposal of the appeal before the Sales Tax Appellate Tribunal for the assessment year 2003-04 under the CST Act, and pass appropriate orders. Counsel for the Petitioner: MR.S.DWARAKANATH Counsel for the Respondents: GP FOR COMMERCIAL TAXES The Court made the following : HON'BLE MR JUSTICE GHULAM MOHAMMED AND HON'BLE MR JUSTICE B.SESHASAYANA REDDY WRIT PETITION No.25431 of 2008 ORDER: (per the Hon’ble Sri Justice Ghulam Mohammed) This writ petition is filed seeking to quash the order, dated 14.10.2008, passed by the third respondent-Joint Commissioner (CT) Legal, Hyderabad, in CCT’s Ref.No.LV(1)/674/2008 as illegal and arbitrary and consequently, restrain the first respondent from taking coercive steps for recovery of disputed tax of Rs.7,22,,332/- pending disposal of the appeal before the Sales Tax Appellate Tribunal for the assessment year 2003-04. It is the case of the petitioner that they have sold unbranded software to their customers such as M/s Godavari Fertilizers, M/s A.P.Line and Stock Development, etc. Further, it is their case that un-branded software is not goods and no tax can be levied on un-branded software. However, the Joint Commissioner following the decision of the A.P. Sales Tax Appellate Tribunal in M/s Computer Vision Labs India Ltd Vs. State of A.P.[1] wherein, the judgment of the Supreme Court in M/s Tata Consultancy Services case referred, held that even un-branded software is also goods and thereby rejected stay petition. Heard learned counsel appearing on either side. It is not in dispute that the petitioner filed an appeal before the Sales Tax Appellate Tribunal. Pending disposal of the appeal, he also filed an application seeking stay of collection of the disputed tax before the third respondent- Joint Collector, but he declined to grant stay of the order, dated 14.10.2008, passed by the second respondent herein. Having regard to the facts and circumstances, we deem it appropriate to suspend the operation of the order, dated 12.05.2008, passed by the second respondent-the Deputy Commissioner (CT), Abids Division Hyderabad, pending disposal of the appeal before the Sales Tax Appellate Tribunal, subject to the petitioner depositing ½ of the disputed tax within a period of six weeks from today. It is made clear that the amount, if any, paid by the petitioner shall be given credit to. Subject to the above, the writ petition is disposed of. No order as to costs. ______________________________ JUSTICE GHULAM MOHAMMED ________________________________ JUSTICE B.SESHASAYANA REDDY 20th November 2008 DR ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1 The Commercial Tax Officer, Basheerbagh Circle, Hyderabad. 2 The Deputy Commissioner (CT), Abids Division, Hyderabad. 3 The Joint Commissioner (CT) Legal, Andhra Pradesh, Hyderabad. 4 2CCs to GP for Commercial Taxes, High Court of A.P., Hyderabad. (OUT) 5 2CD copies [1] 46 APSTJ 244