IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE TWENTY SEVENTH DAY OF NOVEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE GODA RAGHURAM AND THE HON'BLE MR JUSTICE P.V.SANJAY KUMAR WRIT PETITION No.25998 OF 2008 Between: M/s. Midfield Industries Ltd., Plot No.6, Phase-IV Extension, IDA Jeedimetla, Hyderabad-500055, Represented by its Managing Director Mr.M.Madhu Mohan Reddy ..... PETITIONER AND 1 The Commercial Tax Officer, IDA Gandhinagar Circle, Hyderabad. 2 The Appellate Deputy Commissioner (CT), Hyderabad Rural 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 an appropriate writ order or direction more particularly one in the nature of writ of Mandamus declaring the action of the second respondent in rejecting the stay application filed by the petitioner seeking stay of recovery of the disputed tax of Rs.33,56,443/- for the assessment year 2004-2005 under the CST Act pending appeal through the impugned proceedings dated 18-11-2008 and the consequential action of the first respondent in issuing the impugned notice dated 19.11.2008 as illegal arbitrary and contrary to the provisions of the Act and set aside the same and restrain the first respondent from taking any coercive steps for recovery of the disputed tax Rs.33,56,443/- for the assessment year 2004-2005 under the CST Act in pursuance of his Notice dated 19.11.2008 pending disposal of the appeal before the second respondent. Counsel for the Petitioner:MR.BHASKAR REDDY VEMIREDDY Counsel for the Respondents: GP FOR COMMERCIAL TAX The Court made the following : THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE P.V.SANJAY KUMAR WRIT PETITION NO.25998 OF 2008 O R D E R (Per Sri Justice P.V.Sanjay Kumar) Aggrieved by the refusal of a stay pending disposal of the petitioner’s statutory appeal, the present writ petition is filed. The petitioner was assessed under the Central Sales Tax Act, 1956, for the Assessment Year 2004-05 and was held liable to pay tax to the tune of Rs.33,56,443/- by the order dated 25.03.2008 passed by the C.T.O., IDA, Gandhinagar Circle, Hyderabad. Challenging the same, the petitioner filed an appeal before the Appellate Deputy Commissioner (CT), Hyderabad Rural Division, Hyderabad. By the order dated 18.11.2008 passed by the Appellate Authority, the application filed by the petitioner seeking stay of collection of the disputed tax was dismissed. Hence, this writ petition. Considering the fact that the petitioner’s substantive statutory appeal is pending adjudication on the file of the appellate authority, we are of the view that the stay application filed by the petitioner ought to have been considered by imposing suitable terms instead of being rejected. This writ petition is accordingly disposed of at the stage of admission, directing the stay of collection of the disputed tax pending disposal of the appeal filed by the petitioner, subject to the condition that the petitioner deposits 50% of the disputed tax of Rs.33,56,443/- to the credit of the CTO, IDA, Gandhinagar Circle, Hyderabad, within a period of six weeks from the date of receipt of a copy of this order. Needless to state, any amount already paid by the petitioner towards the disputed tax shall be given due credit while computing the amount to be deposited under this order. In the event of default of the deposit as directed above, the stay granted herein shall stand dissolved. There shall be no order as to costs. _______________________ GODA RAGHURAM, J. _________________________ P.V.SANJAY KUMAR, J. 27th NOVEMBER, 2008 PGS/VGSR ( ) THE HON’BLE SRI JUSTICE GODA RAGHURAM AND THE HON’BLE SRI JUSTICE P.V.SANJAY KUMAR WRIT PETITION NO.25998 OF 2008 (Per Sri Justice P.V.Sanjay Kumar) 27th November, 2008