THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN W.P.No.18612 OF 2009 ORDER: (Per Hon’ble Sri Justice Ramesh Ranganathan) The order of the 3rd respondent dated 21.7.2009, rejecting the petitioner’s stay application pending appeal before Sales Tax Appellate Tribunal (STAT), is under challenge in this writ petition. The petitioner, a dealer on the rolls of the 2nd respondent, is carrying on business in fire fighting and security systems. The 2nd respondent assessed the petitioner to tax by proceedings dated 7.3.2008. The 1st respondent, however, revised the said assessment by his order dated 29.11.2008 directing the petitioner to pay the balance tax demanded of Rs.4,88,650/-. Aggrieved thereby, the petitioner carried the matter in appeal to the STAT. They filed a stay petition before the 3rd respondent which was rejected by order dated 21.7.2009. In the order, under challenge in this writ petition, the 3rd respondent observed that the revisional authority had relied on the judgment of the Supreme Court in State of Andhra Pradesh v. Kone Elevators (India) Ltd[1] and had, accordingly, held that supply and installation of fire fighting and security systems is a contract for sale of goods, and not a contract for work and labour. Sri Sheikh Jeelani Basha, Learned Counsel for the petitioner, would submit that another bench of the Supreme Court had doubted the correctness of the judgment in Kone Elevators (India) Ltd1, and the matter has been referred to a larger Bench; the Supreme Court in several matters, wherein similar questions arose for consideration, had granted stay; and the order of the 3rd respondent dated 21.7.2009 was illegal, and is required to be quashed. As a substantive appeal is pending adjudication before the STAT, we do no consider it appropriate to make any observations on merits. Suffice to hold that, since the petitioner has already paid 25% of the disputed tax as pre-deposit for an appeal being entertained by the STAT, the interim order passed by this Court on 15.10.2009 shall continue till the appeal is disposed of by the STAT subject, however, to the condition that the petitioner deposits an additional amount of Rs.1.00 lakh within a period of three weeks from today. The STAT shall hear the appeal on merits at the earliest preferably within a period of two months from the date of receipt a copy of this order. The writ petition is disposed of accordingly. No costs. ______________ (V.V.S.RAO, J) ___________________________ (RAMESH RANGANATHAN,J) 09.03.2011 asp [1] (2005) 140 STC 22