THE HON'BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.27447 of 2009 March 21, 2011 Between: M/s.Nucon Zander India Private Limited (now amalgamated with M/s.Nucon Industries Private Ltd) Represented by its Accounts Officer, Mr.K.Bhaskar Rao … Petitioner AND The Commercial Tax Officer, IDA Gandhinagar Circle, Hyderabad And others … Respondents THE HON'BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.27447 of 2009 ORDER : (Per Hon’ble Sri Justice Ramesh Ranganathan) The order impugned in this writ petition is that of the third respondent dated 17.11.2009 whereby the petitioner was granted stay as an interim measure till the disposal of the appeal by the Sales Tax Appellate Tribunal subject to the condition that the petitioner remitted 2/3rd of the balance disputed tax within four weeks from the date of the order. The third respondent further observed that, in case the petitioner failed to remit the stipulated amount within the stipulated time, the stay granted would get vacated automatically. The first respondent had, earlier by notice dated 16.10.2009, informed the petitioner that, since there was no stay against the arrears, they should pay ` 24,80,296/- within six days failing which action would be initiated under the provisions of the Andhra Pradesh Revenue Recovery Act, 1864. The petitioner, a registered dealer under the provisions of the Andhra Pradesh General Sales Tax Act, 1957 and the Central Sales Tax Act, 1956, is engaged in the business of manufacture and sale of machinery parts. They also undertake job works. They were granted industrial incentives of sales tax deferment under G.O.Ms. No.108, dated 20.5.1996 vide final eligibility certificate dated 18.4.2011 for ` 2,34,38,030/- to be availed within a period of 14 years i.e., from 16.3.1998 to 15.3.2012 after crossing base production of ` 215.87 lakhs. The petitioner’s case is that, for the assessment year in question, they had not utilised the incentive amount in its entirety and the assessing authority, while levying tax of ` 31,95,190/- and calling upon the petitioner to pay the balance `24,80,296/-, had endorsed, both in the order of assessment and in the demand notice, that the said amount payable as tax was covered by deferment. Sri S.Dwarakanath, learned Counsel for the petitioner, would submit that, even if the petitioner had not preferred an appeal, no amount could have been recovered from them towards tax immediately after the assessment order was passed, as the said amount was covered by deferment whereunder the petitioner was required to pay the tax much later. The grievance of the petitioner, in short, is that the order of the third respondent dated 17.11.2009 had put them in a position worse than if no appeal was preferred against the order passed by the assessing authority. When the matter came up for admission we adjourned the matter to enable the learned Special Standing Counsel for Commercial Taxes to ascertain whether the assessing authority had, in fact, endorsed on the assessment order, and in the demand notice, that the tax payable was under deferment. Learned Standing Counsel, on instructions, would submit that the tax levied on the petitioner is indeed covered by tax deferment. As the petitioner has not, as yet, utilized the tax deferment benefit granted to them in its entirety, they are not liable to pay tax immediately on the order of assessment being passed, but later in accordance with the tax deferment benefit granted to them under G.O.Ms.No.108, dated 20.5.1996. In such circumstances, and in as much as the respondents are precluded from recovering the tax due immediately after the assessment order is passed as the tax payable continues to be covered under the tax deferment scheme, we direct the respondents not to take coercive steps for recovery of the tax due pending disposal of the appeal by the STAT. The writ petitions stands disposed of accordingly. No costs. _______________ (V.V.S.RAO, J) ______________________________ (RAMESH RANGANATHAN, J) March 21, 2011 YS