IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE SIXTEENTH DAY OF JUNE TWO THOUSAND AND NINE PRESENT THE HON'BLE THE CHIEF JUSTICE SRI ANIL R. DAVE AND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 11600 of 2009 Between: M/s. MI Overseas Limited, 16-22-26, Beach Road, Suryaraopet, Kakinada, East Godavari District, Rep. by its Country Manager, Mr. Aslam I. Khan, Deshmukh. ..... PETITIONER AND 1 The Commercial Tax Officer, Kakinada Circle, Kakinada. 2 The Appellate Deputy Commissioner (CT), Visakhapatnam. 3 The Joint Commissioner (CT) (Legal), O/o. The Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad. 4 The Secretary, Sales Tax Appellate Tribunal, Additional Bench at Visakhapatnam. 5 M/s. HSBC Limited, Andheri, Mumbai, represented by its Branch Manager 6 Gujarat State Petroleum Corporation Ltd., GSPC Wherehouse, New Port Area, Beach Road Kakinada, East Godavari District, Rep. by its Base Manager 7 Reliance Industries Ltd., Kakinada, Rep. by its Finance Manager .....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, order or direction more particularly one in the nature of Writ of Mandamus or any other appropriate Writ, Order or direction, declaring the order passed by the Hon'ble Sales Tax Appellate Tribunal, Additional Bench at Visakhapatnam in T.M.P. No. 174/09 in T.M.P. No. 93/09 in TA No. 127/09, dated 29th May, 2009 as illegal, arbitrary, highhanded and set aside the same and consequently set aside the impugned Garnishee notices issued by the first respondent dated 1-6-2009 and 4-6-2009 and restrain the first respondent from taking any coercive steps for recovery of the balance disputed tax of Rs.5,57,56,797/- out of total disputed tax of Rs.13,93,91,992/- pending disposal of the appeal in TA No.127/09 by the Hon’ble STAT, Additional Bench at Visakhapatnam. Counsel for the Petitioner: MR. BHASKAR REDDY VEMIREDDY Counsel for the Respondent Nos.1 to 4: MR. K. RAJI REDDY, SPECIAL STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : ORDER: (per Sri Anil R. Dave, CJ) Learned advocate appearing for the petitioner seeks permission to delete respondent Nos.5 to 7. Permission is granted. Respondent Nos.5 to 7 stand deleted. Rule. Service of Rule is waived by Sri K. Raji Reddy, learned Special Standing Counsel for Commercial Tax, for respondent Nos.1 to 4. At the request of the learned Advocates, the petition is finally heard today. At the time of hearing of the petition, it has been submitted by the learned Advocates that the Sales Tax Appellate Tribunal has already heard the appeal of the petitioner and the case has been reserved for orders. It has also been brought to our notice that garnishee orders have already been issued in the meantime. Looking to the above facts, in our opinion, it would be just and proper if the petitioner is protected till the final order is pronounced by the Tribunal. In the circumstances, it is directed that no coercive action shall be taken for recovery of the amount of tax till a final order is pronounced by the Tribunal. In view of the above direction, the notices issued under Section 29 of the Andhra Pradesh Value Added Tax Act, 2005, dt.1.6.2009 and 4.6.2009, to HSBC Bank, Andheri, Mumbai, Gujarat State Petroleum Corporation Limited, Kakinada and Reliance Industries Limited, Kakinada, respectively are quashed and set aside. Respondent No.1 shall give intimation of this order to the concerned parties to whom garnishee orders have been issued. The petition stands disposed of as allowed with no order as to costs. _______________ ANIL R. DAVE, CJ _______________________ RAMESH RANGANATHAN, J 16.6.2009 bnr Note: Operative portion of the order may be communicated by WIRE at party’s costs. (B.O) bnr