HON’BLE SRI JUSTICE G.BHAVANI PRASAD CRIMINAL PETITION No.6053 of 2009 DATED:10.08.2009 Between: L.G.Varadarajulu, Chairman, M/s.Elgi Finance Limited, Elgi House, Trichy Road, Ramanathapuram, Coimbatore and others .. Petitioners And Government of Andhra Pradesh, rep., by Sri Y.Vijaya Rao, Commercial Tax Officer, near R.T.C. Bus Stand, Puttur, Chittoor District and another .. Respondents HON’BLE SRI JUSTICE G.BHAVANI PRASAD CRIMINAL PETITION No.6053 of 2009 ORDER: Heard Sri Ch.Dhanamjaya, learned counsel for the petitioners and Sri A.V.Krishna Koundinya, learned Special Standing Counsel for Commercial Taxes for the first respondent and Sri K.Dhananjaya, learned Additional Public Prosecutor for the second respondent. The petitioners claim that the subject matter of T.A.Nos.1170, 1177 and 1172 of 2000 before the Sales Tax Appellate Tribunal and the subject matter of S.T.C.No.27 of 2006 on the file of the Judicial Magistrate of First Class, Nagari are one and the same. The petitioners claim that the assessment orders, based on which the prosecution is launched, are the subject matter of challenge in the pending appeals and, therefore, it will be in the interests of justice to await the outcome of the appeals before proceeding further with the criminal proceedings. Sri Ch.Dhanamjaya, learned counsel for the petitioners has fairly conceded that the request for quashing the proceedings altogether may not be considered as of now, while the criminal proceedings may be stalled till the finalisation of the appeals before the Sales Tax Appellate Tribunal, leaving open the other questions raised by him to be determined later in appropriate proceedings. Learned counsel relied on Commissioner of Income Tax, Mumbai v. Bhupen Champak Lal Dalal and another1 wherein also, appeals under the Income Tax Act before the Commissioner or the Income Tax Appellate Tribunal and prosecution for the offences punishable under the same Act were simultaneously pending. The High Court granted an interim order staying the proceedings in the criminal cases and the Apex Court, while noting that both the proceedings are independent proceedings with no impediment in law for the criminal proceedings to proceed even during the pendency of the proceedings under the Income Tax Act, observed that a wholesome rule will have to be adopted in matters of this nature where the Courts have taken the view that when the conclusions arrived at by the Appellate Authorities have a relevance and bearing upon the conclusions to be reached in the criminal case and therefore, the postponement of the criminal proceedings will be in the interests of justice. Sri A.V.Krishna Koundinya, learned Special Standing Counsel for Commercial Taxes has sought for liberty to proceed with the criminal proceedings no sooner than the appeals before the Sales Tax Appellate Tribunal are disposed of, which request is unexceptionable. Therefore, the further proceedings in S.T.C.No.27 of 2006 on the file of the Judicial Magistrate of First Class, Nagari against the petitioners herein shall stand stayed till the disposal of the T.A.Nos.1170, 1177 and 1172 of 2000 before the Sales Tax Appellate Tribunal at Hyderabad and the trial Court can proceed further with the said case on information of the disposal of the said appeals by the Sales Tax Appellate Tribunal, Hyderabad being placed before it by the first respondent. The Criminal Petition is ordered accordingly. ______________________ G.BHAVANI PRASAD, J 10th August 2009 KH 1 (2001) 3 Supreme Court Cases 459