IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY SIXTH DAY OF SEPTEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE G.CHANDRAIAH WRIT PETITION NO : 20972 of 2008 Between: M/s. B.N. Madhusudhan Reddy Works Contractor, S/o. B. Narayana Reddy R/o. Attapur, Rajendranagar, Hyderabad. ..... PETITIONER AND 1 The Commercial Tax Officer (CTO) Rajendranagar Circle, Saroornagar Division, Hyderabad. 2 Dy. Commercial Tax Officer, Saroornagar Division, 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 order or direction more particularly one in the nature of writ of Mandamus declaring the demand notice dt.6-8-2008 in Form VAT 2002 for collection of the disputed taxes of Rs.57,012/- during pendency of appeal before the Appellate Deputy Commissioner Rural Division, is illegal, arbitrary contrary to law and set aside the same. Consequently direct the 2nd respondent not to collect the disputed taxes for the period 2006-07 during pendency of the appeal before the Appellate Deputy Commissioner of Commercial Taxes Rules, Hyderabad and grant such other Relief or relief's as are deemed fit and proper in the circumstances of the case. Counsel for the Petitioner: MR.KUNUKUDURGAPRASAD Counsel for the Respondents.: SPECIAL STANDING COUNSEL FOR COMMERCIAL TAXES The Court made the following : THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE G.CHANDRAIAH WRIT PETITION NO : 20972 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is filed seeking to declare the demand notice dated 6-8-2008 in Form VAT 2002 for collection of the disputed tax of Rs.57,012/- during pendency of an appeal before the Appellate Deputy Commissioner Rural Division, as illegal and to set aside the same and consequently, to direct the 2nd respondent not to collect the disputed tax for the period 2006-07 during pendency of the appeal. It is the case of the petitioner that aggrieved by the assessment made by the 2nd respondent, an appeal has been preferred before the Appellate Deputy Commissioner, Rural Division, Hyderabad and the same is pending. At this stage, the 1st respondent issued the impugned notice demanding payment of tax and penalty. Hence, 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 appeal ﬁled by the petitioner is pending and at this stage, the action of the 1st respondent in issuing the impugned notice is arbitrary and illegal and in these circumstances, if the stay is not granted and if the disputed tax 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 Appellate Deputy Commissioner, Rural Division, Hyderabad and in view of the fact that a direction is sought for only in respect of the disputed tax, 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 tax for the assessment year in question, pending disposal of the appeal before the Appellate Deputy Commissioner, Rural Division, Hyderabad, subject to the condition of the petitioner depositing 50% of the disputed tax, within a period of six weeks from today. However, it is made clear that the 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 G. Chandraiah Date: 26th September, 2008 Nn/gurc. THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE G.CHANDRAIAH WRIT PETITION NO : 20972 of 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 26/09/2008