IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE FOURTEENTH DAY OF AUGUST TWO THOUSAND AND EIGHT PRESENT THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE P.V.SANJAY KUMAR WRIT PETITION NO : 17670 of 2008 Between: M/s Rayalaseema Concrete Sleepers (P) Limited, 205, 206, Amarchand Sharma Complex, S.D.Road, Secunderabad-500 003, rep by its Sr. Manager-Legal, Mr. Sunil Palnitkar. ...PETITIONER AND 1 The Commercial Tax Officer, Maharajgunj, Hyderabad. 2 The Deputy Commissioner (CT), Charminar Division, Hyderabad. 3 The Additional commissioner (CT) Legal, Andhra Pradesh, 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 a Writ of Certiorari or any other appropriate writ or order or direction quashing the impugned stay rejection order passed by 3rd Respondent dated 29-7-2008 in CCT's Ref.No.LIII(2)/511/2008 as illegal, arbitrary and highhanded and restrain the 1st Respondent from taking any coercive steps for recovery of the disputed penalty of Rs.3,22,25,365/- for the assessment year 1997-98 under CST Act, pending disposal of the appeal, before the Hon'ble Sales Tax Appellate Tribunal in T.A.No.353 of 2004. Counsel for the Petitioner: MR.S.DWARAKANATH Counsel for the Respondents.: SRI A.V. KRISHNA KOUNDINYA, SPECIAL STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : . THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE P.V. SANJAY KUMAR WRIT PETITION NO : 17670 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is filed by the petitioner seeking to set aside the order, dated 29.7.2008 passed by the 3rd respondent rejecting the stay petition, and to restrain the 1st respondent from taking any coercive steps for recovery of the disputed penalty of Rs.3,22,25,365/- for the assessment year 1997-98, pending disposal of the appeal before the Sales Tax Appellate Tribunal. The main grievance of the petitioner is that against the order passed by the 2nd respondent imposing penalty, an appeal has been preferred before the Sales Tax Appellate Tribunal and the same is pending. While so, as the 1st respondent has been insisting for payment of the disputed penalty, the petitioner filed a stay petition before the 3rd respondent. But the 3rd respondent rejected the stay application. Now, the steps are being taken for recovery of the same. Having aggrieved by the same, the present writ petition has been filed. Heard the learned Counsel appearing for the petitioner and the learned Special Standing Counsel for Commercial Tax and perused the material available on record. It is the contention of the learned Counsel for the petitioner that the petitioner has preferred an appeal before the Sales Tax Appellate Tribunal challenging the penalty proceedings and the same is pending and that as per the revised orders passed by the 1st respondent, the liability of tax is reduced and thereby, the disputed penalty is also liable to be reduced and therefore, the 1st respondent is not justified in insisting for payment of the penalty in question and in these circumstances, if the relief of stay is not granted and if the disputed penalty is recovered, the very purpose of filing the appeal would be defeated. In the facts and circumstances of the case and in view of the fact that the appeal is pending before the Tribunal, without expressing any opinion on the merits of the case, We feel it a fit case wherein stay can be granted, but subject to certain conditions. Accordingly, there shall be stay of recovery of the disputed penalty of Rs.3,22,25,365/- for the period in question, pending disposal of the appeal before the Tribunal, subject to the condition of the petitioner depositing 25% of the disputed penalty, within a period of three months from today. However, it is made clear that the penalty amount paid if any, shall be given credit to the above stipulated sum. Subject to the above direction, the writ petition is disposed of. No order as to costs. ________________________ Justice T. Meena Kumari _________________________ Justice P.V. Sanjay Kumar Date: 14th August, 2008 NOTE: C.C on Tuesday (BO) nn/gurc. THE HON'BLE SMT JUSTICE T.MEENA KUMARI and THE HON'BLE SRI JUSTICE P.V. SANJAY KUMAR WRIT PETITION NO : 17670 of 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 14/08/2008