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: 11485 of 2008 Between: M/s Ingersoll Rand (India)Ltd., Ashirwad, Pendersghast Road, Secunderabad. Rep by its Officer-Administration Mr.R.Madhusudhan. ... PETITIONER AND 1 Commercial Tax Officer, S.D. Road Circle, Secunderabad. 2 Additional Commissioner (CT)(Legal), A.P., Hyderabad. 3 The Branch Manager, Bank of India, M.G. Road Branch, 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 Writ of Mandamus or any other appropriate Writ or Order or Direction declaring the action of the 1st respondent in not revoking the Garnishee Notice dated 29.02.2008, pending appeal and stay application before the Sales Tax Appellate Tribunal in view of the decision of this Hon'ble Court in M/s Anab-E-Shahi Wines and Distilleries case reported in 98 STC 386 which was affirmed by the Apex Court reported in 108 STC 4(FRSC) as arbitrary, contrary to law and in violation of principles of natural justice and consequently grant stay of collection of disputed demand of Rs.4,93,000/- (and not at Rs.12,83,440/-)for the assessment year 2003-04 under APGST Act, pending disposal of the appeal before the Hon'ble Sales Tax Appellate Tribunal and pass such other order or orders. Counsel for the Petitioner: MR.SHAIK JEELANI BASHA Counsel for the Respondents: MR. K. RAJI REDDY SPL. SC FOR CT GP FOR COMMERCIAL TAX The Court made the following: ORDER: (per Hon’ble Sri Justice Ramesh Ranganathan) Petitioner is carrying on business in road rollers and for the assessment year 2003-2004, the first respondent completed the assessment treating the road rollers as motor vehicles. Aggrieved thereby, the petitioner preferred an appeal before the Appellate Deputy Commissioner, who by proceedings dated 27.04.2004 allowed the appeal. The second respondent, in exercise of the revisional powers under Section 20 of the Andhra Pradesh General Sales Tax Act, 1957, revised the appellate order by proceedings dated 14.12.2007 confirming the orders of the assessing authority treating the road rollers as motor vehicles. Against the said proceedings, the petitioner filed an appeal and stay application before the Sales Tax Appellate Tribunal on 05.03.2008. 2. However, even before the petitioner filed an appeal, the first respondent issued a Garnishee notice dated 27.02.2008 to the third respondent attaching the bank account of the petitioner. Since both the appeal and stay application are pending before the Tribunal the ends of justice would be met if the further proceedings for recovery of tax are stayed subject to the condition that the petitioner deposits 50% of the disputed tax. Since the garnishee notice resulted in the attachment of the bank account of the petitioner, it is appropriate that the 50% of the disputed tax be recovered from the bank itself duly giving credit to the amount, if any, already paid towards this liability by the petitioner herein and the garnishee notice is set aside for the remaining balance, if any. The writ petition is accordingly disposed of. There shall be no order as to costs. ______________________ L. NARASIMHA REDDY, J _____________________ RAMESH RANGANATHAN, J May 28, 2008 DSK