IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY FIRST DAY OF MAY TWO THOUSAND AND EIGHT PRESENT HON’BLE SRI JUSTICE L. NARASIMHA REDDY AND HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.10834 OF 2008 Between: M/s. Annapurna Rice & General Merchants, Mundy bazar, kadapa, rep by its Proprietor, Mr. K. Narasimha Rao ..... PETITIONER AND 1 The Additional Commissioner (CT)., Legal, Office of the Commissioner of Commercial Taxes, Andhra Pradesh, II Floor, CT. Buildings, MJ Road, Nampally, Hyderabad. 2 The Commercial Tax Officer-II, Kadapa, kadapa District, A.P., .....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 in the nature of Mandamus declaring the impugned stay rejection order dated 1-5- 2008 passed by the first respondent in CCT's Ref. No. LIII(3)/334/2008, rejecting the stay petition filed by the Petitioner as illegal, and consequently grant stay of collection of the disputed penalty of Rs. 1,02,230-00 relating to the Assessment Year 2004-2005 APGST (Penalty) pending disposal of the Appeal before the Sales Tax Appellate Tribunal, Hyderabad, and pass such other order or orders as may be deemed fit and proper in the circumstances of the case and in the interests of justice. Counsel for the Petitioner :MR.G.NARENDRA CHETTY Counsel for the Respondents : GP FOR COMMERCIAL TAXES The Court made the following : HON’BLE SRI JUSTICE L. NARASIMHA REDDY AND HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.10834 OF 2008 ORDER : (Per Hon’ble Sri Justice L.Narasimha Reddy) The petitioner is a Rice Mill. The Commercial Tax Officer- II, Kadapa passed an order, dated 14.12.2006, holding that the petitioner is liable to pay not only arrears of tax but also penalty. Aggrieved thereby, the petitioner preferred an appeal before the Appellate Deputy Commissioner (CT), Kurnool. The appeal was dismissed on 24.01.2008. The petitioner availed the remedy of further appeal before the Sales Tax Appellate Tribunal, Hyderabad. It has also filed an application for stay before the 1st respondent, since the Tribunal is not vested with the power to grant stay against the order, dated 14.12.2006. 1st respondent rejected the application for stay. Hence, the writ petition. Heard the learned counsel for petitioner and the learned Special Government Pleader for Commercial Taxes. It is no doubt true that the appeal preferred by the petitioner against the original order dated 14.12.2006 was dismissed. The further appeal is pending adjudication. The disputed amount of tax is said to have already been paid. If the petitioner is required to pay the penalty also, virtually nothing remains to be adjudicated in the further appeal. We are of the view that the interests of the petitioner as well as the Revenue can be protected by directing stay of further proceedings on payment of 25% of the penalty, pending disposal of proceedings by the Tribunal. Hence, the writ petition is disposed of directing that further proceedings in pursuance of the order of penalty dated 23.07.2007 passed by the Commercial Tax Officer-II, Kadapa, shall remain stayed pending disposal of appeal before the Sales Tax Appellate Tribunal, Hyderabad, on condition that the petitioner deposits 25% of the penalty levied against it within six weeks from today. If the petitioner had deposited any amount towards penalty under the said order, the same shall be taken into account. _______________________ L. NARASIMHA REDDY, J 21st May 2008. __________________________ RAMESH RANGANATHAN, J ajr To 1 The Additional Commissioner (CT)., Legal, Office of the Commissioner of Commercial Taxes, Andhra Pradesh, II Floor, CT. Buildings, MJ Road, Nampally, Hyderabad. 2 The Commercial Tax Officer-II, Kadapa, kadapa District, A.P.,