IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE THIRTEENTH DAY OF MAY TWO THOUSAND AND NINE PRESENT THE HON'BLE SRI JUSTICE V.ESWARAIAH & THE HON'BLE SRI JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 10079 of 2009 Between: Hindustan Coca Cola Beverages Pvt. Ltd., 44-69, Moula Ali, Hyderabad, Rep. by its Authorized Signatory, Shaik Ali Pasha, Executive Legal ..... PETITIONER AND 1 Assistant Commissioner (CT) LTU Saroornagar Division, Nampally, Hyderabad. 2 Appellate Deputy Commissioner Hyderabad Rural Division, Nampally, Hyderabad. .....RESPONDENT(S) 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 an appropriate writ order or direction more particularly in the nature of writ of Mandamus declaring the Order of Appellate Deputy Commissioner dt. 27-4- 2009 as illegal, void, inoperative and set aside the same and interdict the respondent authorities from collecting interest pursuant to the order dt. 20-3-2009 passed by the Assistant Commissioner (CT) LTU, Saroornagar Division, Nampally, Hyderabad, during the pendency of Appeal No. S/7/2009-10 on the file of the Appellate Deputy Commissioner, Hyderabad and pass Counsel for the Petitioner: SRI S.CHAKRAPANI Counsel for the Respondent No.: GP FOR COMMERCIAL TAX The Court made the following : THE HON'BLE SRI JUSTICE V.ESWARAIAH & THE HON'BLE SRI JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 10079 of 2009 ORDER: (Per the Hon’ble Sri Justice Vilas V. Afzulpurkar) This writ petition is directed against the order of the Appellate Deputy Commissioner, Hyderabad Rural Division, Nampally, dated 27.4.2009 in Appeal No.S/7/2009-10-VAT. The above appeal is preferred by the appellant against the demand made by the assessing authority with respect to the interest on taxes payable from April, 2005 to September, 2008 and the aforesaid impugned order has been passed pending the appeal filed by the petitioner. The appellate Deputy Commissioner granted stay of the disputed interest to the extent of 2/3rd till the disposal of the appeal, subject to the condition of the petitioner paying 1/4th of the disputed interest within the stipulated period of 15 days. Aggrieved by the said condition directing the petitioner to deposit 1/3rd of the disputed interest, the present writ petition is filed by the petitioner. Sri S.R. Ashok, the learned senior counsel for the petitioner has made elaborate submissions touching the very merits of the prima facie case and also referred to the earlier order passed by this Court in W.P.No:4699 of 2009, dated 6.3.2009. He has also referred to the fact that pursuant to the order of the appellate authority, dated 24.3.2009 granting stay of 2/3rd of the disputed tax till the disposal of the appeal subject to the condition of payment of the balance disputed tax, the appellant has already complied with the same by paying the balance disputed tax and that the appeal is pending before the appellate authority. The learned senior counsel, therefore, submits that since the liability to pay the interest itself is in dispute, the condition stipulated to pay 1/3rd of the disputed interest is unjustified. We have heard the learned G.P. who submits that the appellate authority has given the uniform treatment by granting stay of 2/3rd of the tax and interest and therefore, there is no reason to interfere with the same. The disputed interest in question carries more than Rs.1 ½ crores and out of the same, 1/3rd of the disputed interest would work out toRs.55 lakhs. In this view of the matter and in view of the fact that the conditional order of the appellate authority as to the payment of 1/3rd of the disputed tax has already been complied with and the appeal is pending and keeping in view the over all circumstances of the case, We are of the view that the condition stipulated by the appellate authority in its order dated 27.4.2009 can be modified to that of the petitioner depositing a sum of Rs.25 lakhs. Accordingly, there shall be stay of recovery of disputed interest in question pending the appeal, subject to the condition of the petitioner paying Rs.25 lakhs within a period of 4 (four) Weeks from today. The order impugned is modified to that effect. Subject to the above modification, this writ petition is disposed of. ____________________ Justice V.Eswaraiah. ___________________________ Justice Vilas V. Afzulpurkar Note: Operative portion of the order by wire (BO) gurc/nn THE HON'BLE SRI JUSTICE V.ESWARAIAH & THE HON'BLE SRI JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 10079 of 2009 (Order of the Division Bench delivered by Sri Justice Vilas V. AfzalPurkar) 13th May, 2009