IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE THIRTY FIRST DAY OF MARCH TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE B.PRAKASH RAO And THE HON'BLE MR JUSTICE C.Y.SOMAYAJULU WRIT PETITION NO.6652 of 2008 Between: M/s. Ranakpur Oil & Solvents Pvt. Ltd., 17-119d, Alur Road, Adoni, Kurnool District, Rep. by its Director, Mr. G.P. Darshan. ...PETITIONER AND 1 The Assistant Commissioner (CT) (INT) Large Tax Payers Unit Circle, Kurnool Division, Kurnool. 2 Appellate Deputy Commissioner (CT) Kurnool. ...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 writ of Mandamus or any other appropriate writ or Order or Direction declaring the action of the 2nd respondent in rejecting the stay application without considering all the contentions of the petitioner vide Proceedings dt. 11-12-2007 against the penalty proceedings of the 1st respondent levied under section 53(3) of the A.P. VAT Act, as arbitrary contrary to law and in violation of principles of natural justice and consequently grant stay of collection of disputed penalty of Rs. 2,19,622/- for the June 2005 to January 2006 pending disposal of the appeal before the 2nd respondent. Counsel for the Petitioner: MR.M.V.PAVAN KUMAR Counsel for the Respondents: GP FOR COMMERCIAL TAX The Court made the following: THE HON'BLE MR JUSTICE B.PRAKASH RAO And THE HON'BLE MR JUSTICE C.Y.SOMAYAJULU WRIT PETITION NO.6652 of 2008 ORDER: (Per the Hon’ble Mr Justice B.Prakash Rao) Heard both the sides and at their request, the main writ petition itself is taken up for disposal. The petitioner herein is aggrieved against the orders of not granting stay and issuing garnishee notice pending substantive on the file of the Sales Tax Appellate Tribunal. Having heard the learned counsel and on perusal of the material on record, since the appeal is pending involving several substantial questions, it is suffice in the interest of justice to grant stay subject to certain conditions. The Writ Petition is disposed of granting stay pending disposal of the appeal, on a condition of the petitioner depositing 25% of the disputed tax within a period of six {6} weeks from today. The amounts, if any, already paid shall be given credit to. The impugned garnishee notice shall stand suspended till the disposal of the appeal. The appeal shall be disposed of on merits after giving notice and opportunity to both the sides. _________________ (B.PRAKASH RAO, J) __________________ (C.Y.SOMAYAJULU, J) 31st March 2008 RRB