IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY NINETH DAY OF OCTOBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE G. CHANDRAIAH WRIT PETITION NO : 23460 of 2008 Between: M/s. Andhra Fuels Private Limited, 6-3-1110, 11 & 12, Amrutha Mall, Somajiguda, Hyderabad - 500 016, rep. by its General Manager - Finance, Mr.S.Ravi Prasad. ..... PETITIONER AND 1 The Commercial Tax Officer, Srinagar Colony 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 a Writ of Mandamus or any other appropriate Writ or order or direction to restrain the 1st Respondent from taking any coercive steps for recovery of balance disputed tax of Rs. 22,69,.383/- out ot total disputed tax of Rs. 45,40,235/- for the assessment year 2004-05 (APGST) pending disposal of the appeal before the Sales Tax Appellate Tribunal, and to pass such other suitable orders as this court may deems ﬁt and proper in the circumstances of the case. Counsel for the Petitioner: MR.S.DWARAKANATH Counsel for the Respondents: GP FOR COMMERCIAL TAX The Division Bench of this Court made the following : (Order follows 2nd page) THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE G. CHANDRAIAH WRIT PETITION NO : 23460 of 2008 Seeking a writ of mandamus to restrain the ﬁrst respondent from taking any coercive steps for recovery of balance disputed tax of Rs.22,69,383-00 out of total disputed tax of Rs.45,40,235-00 for the assessment year 2004-05 under APGST pending disposal of the appeal before the Sales Tax Appellate Tribunal and to pass such other suitable orders as this court may deems ﬁt and proper in the circumstances of the case. 2. It is stated that the petitioner is a registered dealer under the APGST Act, 1957 since repealed by AP Value Added Tax, 2005. The petitioner is engaged in the business of trading in natural gas. It buys natural gas from Gas Authority of India Limited who is the ﬁrst seller and in turn sells the entire gas so purchased to its sister concern, M/s. RVK Energy Private Limited, who are engaged in generation of power. The natural gas so purchased by RVJ Energy Private Limited is used as fuel in their industry. 3. It is further stated that the ﬁnal assessment for the year 2004-02 under the APGST Act had been completed by the ﬁrst respondent by order dated 31-3- 2008 levying tax at 16% on natural gas by the petitioner treating the commodity falling under entry 23 of Sixth Schedule to the Act. Aggrieved of the orders passed by the first respondent, the petitioner filed an appeal along with stay application before the second respondent on 13-5-2008. The second respondent by an order dated 14- 7-2008 had refused to grant stay of collection of disputed tax. Pursuant to the order passed by the second respondent, the ﬁrst respondent has issued notice dated 18-7-2008 calling upon the petitioner to pay the balance disputed tax of Rs.33,58,382-00 and is threatening to take coercive steps for the balance in demand. Challenging the said order, the petitioner ﬁled WP.No. 16470 of 2008 before this Court seeking stay of collection of disputed tax. This Court granted stay on payment of 50% of the disputed tax within a period of eight weeks by order dated 30-7-2008 pending disposal of the appeal before the second respondent. The petitioner had complied with the order passed by this court. 4. It is also stated that the second respondent by an order dated 27-9=2008 had dismissed the appeal before appreciating the contentions of the petitioner. In view of the order passed by the second respondent, the grant granted by this court has become inoperative. The ﬁrst respondent has issued notice dated 17-10-2008 seeking payment of the balance disputed tax. Against the order of the second respondent, the petitioner ﬁled an appeal along with stay application before the Sales Tax Appellate Tribunal on 23-10-2008. 3. It is submitted by the learned counsel for the petitioner that though several contentions were raised before the respondent-authorities but pending consideration of the appeal and stay application pending before the Sales Tax Appellate Tribunal, the respondent authorities are contemplating to take coercive steps against the petitioner. 4. Heard the learned counsel for the petitioner and the learned Special Standing Counsel for Commercial Taxes. 5. In the facts and circumstances of the case, we are of the opinion that the writ petition can be disposed of at the stage of admission directing the petitioner to deposit half of the disputed tax amount, as per the impugned order, within a period of eight weeks from today and the respondents are directed not to take coercive step for recovery of the tax, pending ﬁnalisation of the appeal by the Appellate Authority. It is made clear that the amount paid, if any, shall be given credit to the above stipulated sum. With these directions, the writ petition is disposed of at the stage of admission. No order as to costs. ___________________________ JUSTICE T. MEENA KUMARI. _________________________ JUSTICE G. CHANDRAIAH. 29-X-2008. I s L NB: Furnish CC of this order tomorrow. // BY ORDER // I s L ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{KURR}