IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY , THE THIRD DAY OF JULY TWO THOUSAND AND NINE PRESENT THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR WRIT PETITION NO : 13161 of 2009 Between: M/s. liquors India Ltd., Plot No. 8-120, IDA, Nacharam, hyderabad - 500 076 Rep. by its Managing Director, Mr. B.H. Ajeyakumar ..... PETITIONER AND 1 The Commercial Tax Officer, Punjagutta Circle, Hyderabad. 2 The Deputy Commissioner ( CT ) Punjagutta division, Hyderabad. 3 The Additional Commissioner ( CT ) Legal, Andhra Pradesh, hyderabad. 4 The State of A.P., Rep. by its Secretary to Government, Revenue 9 CT-II ) Department, Secretariat, Hyderabad. .....RESPONDENT(S) 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 to issue a Writ of Mandamus or any other appropriate Writ or order or direction declaring - (a) sub-section (6) of Section 21 as invalid and discriminative and strike down the same as violative of Article 14 of the Constitution of India since it treats the assesses who are equally placed differently; (b) consequently, set-aside the impugned order passed by the 3rd respondent dated 7.4.2009 in proceedings in CCTs Ref. No.L.III (2) / 141/2009 as illegal, arbitrary, unreasonable and restrain the 1st Respondents from taking any coercive steps for recovery of the balance disputed tax of Rs. 6,03,297/- out of the total disputed tax of Rs.15,37,797/-, pending disposal of the appeal by the Sales Tax Appellate Tribunal in T.A.No. 259 of 2009 for the assessment year 2003- 049 (APGST), and pass Counsel for the Petitioner:MR.S.DWARAKANATH Counsel for the Respondent No.: GP FOR COMMERCIAL TAX The Court made the following : ORDER: (Per Sri Justice GHULAM MOHAMMED) This Writ Petition has been filed with the following prayer: “For the reasons stated in the accompanying affidavit, it is prayed that the Hon’ble Court may be pleased to issue a Writ of Mandamus or any other appropriate writ or order or direction declaring – (a) sub-section (6) of Section 21 as invalid and discriminative and strike down the same as violative of Article 14 of the Constitution of India since it treats the assesses who are equally placed differently; (b) consequently, set aside the impugned order passed by the 3rd respondent dated 7.4.2009 in proceedings in CCTs Ref.No. L.III(2)/141/2009 as illegal, arbitrary, unreasonable and restrain the 1st respondent from taking any coercive steps for recovery of the balance disputed tax of Rs. 6,03,297/- out of the total disputed tax of Rs. 15,37,797/- pending disposal of the appeal by the Sales Tax Appellate Tribunal in T.A.No. 259 of 2009 for the assessment year 2003-04 (APGST), and pass such other order or orders as the Hon’ble Court may deem fit and proper in the circumstances of the case.” It is stated that the second respondent- The Deputy Commissioner (CT), Punjagutta Division, Hyderabad in exercising powers under Section 20(2) of the Andhra Pradesh General Sales Tax Act, 1957 (for short ‘the Act’) has proposed revision of the assessment order passed by the first respondent and issued show cause notice dated 31.5.2006 on verification of annual report proposing to levy tax on an additional turnover of Rs. 1,28,14,975/- on the ground that the said turnover escaped assessment and proposed tax at 12%, treating the same as sale of general goods. Challenging the same, the petitioner filed an appeal before the Sales Tax Appellate Tribunal in T.A.No. 259 of 2009, which is pending adjudication. As the Sales Tax Appellate Tribunal is not empowered with stay powers under the scheme of the Act, petitioner moved an application before the third respondent, seeking stay of recovery of the disputed demands and filed an application dated 9.3.2009 and the same was dismissed by the impugned proceedings dated 7.4.2009. In view of the rejection of stay by the third respondent, the first respondent issued notice dated 8.5.2009 directing the petitioner to pay the balance disputed tax within three days. It is stated in the notice that the petitioner paid Rs. 9,34,500/- out of total disputed tax of Rs. 15,37,797/- by the date of notice. Feeling aggrieved by the same, the present Writ Petition has been filed. The learned counsel appearing for the petitioner submits that under Section 21 of the Act as against the orders passed by the Revisional Authority viz., Deputy Commissioners, Joint/Additional Commissioner though appeal lies to the Sales Tax Appellate Tribunal, under Section 21 of the Andhra Pradesh General Sales Tax Act (for short ‘the APGST Act’), the incidental power to grant stay, pending appeals on the Tribunal is confined only with reference to the orders passed by the Joint/Additional Commissioner exercising power under Section 14(4) & 20(2) of the APGST Act. But instead of considering the stay application filed by the petitioner, the third respondent- Additional Commissioner, Commercial Tax dismissed the stay petition, which is arbitrary and illegal. As seen from the notice dated 8.5.2009 issued by the first respondent, the first respondent directed the petitioner to pay the balance disputed tax of Rs. 6,03,297/- within three days. It is also clear from the notice that the petitioner paid Rs. 9,34,500/- out of total disputed tax of Rs. 15,37,797/. Be that as it may, as the appeal is already pending before the Sales Tax Appellate Tribunal in T.A.No. 259 of 2009 and payable amount is only Rs. 6,03,297/-, we direct the Sales Tax Appellate Tribunal to dispose of the appeal as expeditiously as possible and in any case within a period of six months. Pending adjudication of the appeal, the authority shall not insist the petitioner to pay the balance amount of Rs. 6,03,297/-. With the above observation, the Writ Petition is disposed of. There shall be no order as to costs. _____________________________ GHULAM MOHAMMED, J ______________________________ VILAS V. AFZULPURKAR, J Dt. 03.07.2009 KA Note: Office is directed to mark a copy to the Sales Tax Appellate Tribunal, Hyderabad ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1. The President AP State Consumer Disputes Redressal Commission, Anandnagar colony,Khairatabad, Hyderabad 2. Two CCs to G.P. for Civil Supplies, High Court of A.P., Hyderabad. 3. 2 CD copies.