IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE THIRTIETH DAY OF JULY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI AND THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 16461 of 2008 Between: M/s. Datta Chandra Constructions & Hosipals Pvt. Limited, Malakpet, Hyderabad, Rep by its Manager (Accounts) Mr. B. Brahmachary ..... PETITIONER AND 1 The Commercial Tax Officer, Malakpet Circle, Hyderabad. 2 The Additional Commissioner (CT), Legal, Andhra Pradesh, Hyderabad. 3 The Secretary, Andhra Pradesh Sales Tax Appellate Tribunla, Opp : Gandhi Bhavan, M.J. Road, Hyderabad. 4 The Branch Manager, Bank of India, Malakpet Branch, 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 or order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the Hon'ble Sales Tax Appellate Tribunal in dismissing the stay petition by orders dated 28-12-2007 in TMP No. 456 of 2007 in TA No. 641 of 2007 for the assessment year 2000-2001, as arbitrary, contrary to the provisions of the Act and also in violation of principles of natural justice and consequently grant stay of colletion of disputed demand of Rs. 3,26,168/- for the assessment year 2000-2001 and kindly direct the 1st respondent to revoke the garnishee notice forthwith, pending disposal of the appeal before the Hon'ble Sales Tax Appellate Tribunal in TA No. 641 of 2007 and pass Counsel for the Petitioner:MR.SHAIK JEELANI BASHA Counsel for the Respondent No.: GP FOR COMMERCIAL TAX The Court made the following : ORAL ORDER: (per THE HON’BLE MRS. JUSTICE T.MEENA KUMARI) Seeking a writ of mandamus declaring order dated 28.12.2007 passed by the Sales Tax Appellate Tribunal whereby the stay petition was dismissed in TMP No. 456 of 2007 in TA No. 641 of 2007 for the assessment years 2000-2001 as illegal, arbitrary and contrary to the provisions of the A.P.G.S.T. Act, 1957 and to consequently grant stay of collection of the disputed tax of Rs.3,26,168/- and to revoke the garnishee notice, pending appeal before the Sales Tax Appellate Tribunal, the petitioner filed this writ petition. The petitioner is a Private Limited Company and is a registered dealer on the rolls of the ﬁrst respondent herein. The ﬁrst respondent has ﬁnalised the assessment for the year 2000-2001 by his proceedings dated 25.09.2002 levying turnover tax at 1% under Sec. 5-A of the Act on the local purchases of surgical goods and diagnostic consumables, without considering the objections raised by the petitioner. The petitioner herein preferred an appeal against the said order before the Appellate Deputy Commissioner (CT), Punjagutta Division, Hyderabad, who allowed the appeal by order dated 11.12.2002. While so, the second respondent in exercise of the powers under Sec. 20(2) of the Act, proposed to revise the order of the ﬁrst Appellate Authority dated 11.12.2002 and issued notice dated 4.8.2004, to which the petitioner ﬁled detailed objections dated 9.11.2004. But, however, the second respondent without considering the same, passed order dated 30.6.2006 conﬁrming the proposed revision. Aggrieved thereby, the petitioner preferred an appeal before the third respondent in TA No. 641 of 2007 and also ﬁled an application seeking stay of collection of the disputed tax pending disposal of the appeal. But the third respondent, by order dated 28.12.2007, refused to grant stay of collection of the disputed tax. Hence, the present petition is filed. Heard the learned counsel for the petitioner and the learned Special Standing Counsel for Commercial Taxes and perused the material available on record. It is the contention of the learned counsel for the petitioner that an appeal is pending before the Appellate Tribunal and at this stage, issuance of the garnishee notice is contrary to law and if stay is not granted, and in case the recovery of the disputed tax in question is eﬀected during pendency of the Appeal before the Appellate Tribunal, the very purpose of ﬁling the said Appeal, which is statutory remedy that is available to the aggrieved party, would be defeated and, therefore, the impugned garnishee notice is liable to be set aside. On the other hand the learned Special Standing Counsel for the Commercial Taxes opposed the petition on the ground that since the Appeal is pending before the Appellate Tribunal, it is for that Authority to grant stay. In the facts and circumstances of the case and in view of pendency of the Appeal, without expressing any opinion on merits of the case, we feel, it is a ﬁt case wherein the garnishee notice in question can be suspended, but subject to imposition of certain conditions. At this stage, it is the contention of the learned counsel for the petitioner that if the garnishee notice is not suspended, it is much diﬃcult to operate the account to meet the regular transactions and also to comply with the order of this Court. In view of the above submission, we deem it appropriate to suspend the garnishee notice dated 18.7.2008 so as to enable the petitioner to continue the operation of the account and comply with the conditions that would be imposed while granting stay by this court, till the disposal of the Appeal filed by the petitioner. Accordingly, there shall be suspension of the garnishee notice Dated 18.7.2008 till the disposal of the appeal pending before the Appellate Tribunal, subject to the condition of the petitioner depositing half of the disputed amount, as per the impugned order, within a period of eight weeks from today. On such deposit, the Appeal shall be disposed of within three months thereafter. It is needless to observe that in case of non-compliance of the above order, the garnishee notice shall become operative. Subject to the above direction, the writ petition is disposed of. No order as to cost. ____________________ Justice T.Meena Kumari ________________________ Justice Ramesh Ranganathan July 30, 2008 Copy by 1.8.2008 //BO// MAS ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{RLD}