IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY SIXTH DAY OF SEPTEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE G.CHANDRAIAH WRIT PETITION NO : 21092 of 2008 Between: M/S. Anandi Art Creations Pvt. Ltd., Nagarjuna Nagar Colony, Hyderabad, Rep. bys its Director Mr. P. Kiran S/o. P. Gopal Rao aged 47 yrs R/o. Hyderabad. ..... PETITIONER AND 1 Deputy Commercial Tax Officer, Jubilee Hills Circle, Hyderabad. 2 Commercial Tax Officer, Srinagar Colony Circle, Hyderabad. 3 Additional Commissioner (CT) Legal O/o. The Commissioner of Commercial Taxes, Government of A.P. 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 Mandamus or any other appropriate writ or order or direction in declaring the action of the 1st Respondent in demanding disputed sales tax of Rs.4,00,000/- against which the appeal is pending under the Act and the stay petition ﬁled before the 3rd respondent is illegal, and contrary to law and consequently grant stay of collection of disputed tax of Rs.4,00,000/- for the assessment year 2002-03 under the Act pursuant to the assessment order passed by the 2nd respondent. Counsel for the Petitioner: SRI TEJPRAKASH TOSHNIWAL Counsel for the Respondents.: SPECIAL STANDING COUNSEL FOR COMMERCIAL TAXES The Court made the following : THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE G.CHANDRAIAH WRIT PETITION NO : 21092 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is ﬁled seeking to declare the action of the 1st respondent in demanding disputed sales tax of Rs.4,00,000/- for the assessment year 2002-03, during the pendency of the appeal and the stay petition, as illegal, and contrary to law and consequently, to grant stay of collection of the disputed tax. It is the case of the petitioner that aggrieved by the assessment order passed by the 2nd respondent, an appeal was preferred before the Appellate Deputy Commissioner (CT), Appeals, Punjagutta Division, Hyderabad and the same was rejected on the ground of non-payment of 12.5% of the disputed sales tax at the time of ﬁling the appeal. Challenging the same, an appeal has been preferred before the Sales Tax Appellate Tribunal and the same is pending. The application ﬁled before the 3rd respondent, seeking stay of collection of the disputed sales tax is also pending. At this stage, the 1st respondent is demanding the payment of the disputed tax. Hence, the present writ petition has been filed. 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 appeal ﬁled before the Tribunal and the stay petition ﬁled before the 3rd respondent are pending and that the petitioner has alreadypaid 12.5% of the disputed tax and at this stage, the demand of the 1st respondent for payment of the disputed tax, is illegal and arbitrary and in these circumstances, if the stay is not granted and if the disputed tax 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 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 certain conditions. Accordingly, there shall be stay of recovery of the disputed tax for the assessment year in question, pending disposal of the appeal before the Tribunal, subject to the condition of the petitioner depositing 50% of the disputed tax, within a period of six weeks from today. However, it is made clear that the 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 G. Chandraiah Date: 26th September, 2008 Nn/gurc. THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE G.CHANDRAIAH WRIT PETITION NO : 21092 of 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 26/09/2008