IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE NINETH DAY OF JUNE TWO THOUSAND AND TEN PRESENT THE HON'BLE MRS. JUSTICE T.MEENA KUMARI AND THE HON'BLE MR JUSTICE NOOTY RAMAMOHANA RAO WRIT PETITION NO : 537 OF 2009 Between: M/s. JCB India Limited, 604/2, 6th Floor, Block – I, White House, Kundanbagh, Hyderabad-16 Rep. By its Regional Manager Mr.S.Sridhar ..... PETITIONER AND Commercial Tax Officer, Saroornagar Circle, Hyderabad and another .....RESPONDENTS The Court made the following : ORAL ORDER: (per THE HON’BLE MRS. JUSTICE T.MEENA KUMARI) The petitioner assails the notice dated 5.1.2009 issued by the first respondent calling upon the petitioner to pay the balance disputed tax of Rs.2,14,40,676/- from out of the total disputed tax of Rs.2,85,89,968/- pending appeal before the Sales Tax Appellate Tribunal and consequently to restrain the respondents from taking coercive steps for recovery of the said sum for the assessment year 2004-2005 (APGST). The petitioner Company is a manufacturer and a dealer in earthmoving and construction equipment and it resells the equipments within the state of Andhra Pradesh received from its factory at Haryana. The petitioner is a registered dealer on the rolls of the first respondent under A.P.G.S.T. Act. To the proposal of the first respondent to finalise the assessment for the year 2004-2005 in respect of the equipment namely excavator, the petitioner objected contending that it is covered by item No.83 of the First Schedule and liable to be taxed at 8% in terms of the appellate order of the second respondent for the assessment year 2002-2003. Rejecting the said contention, the first respondent raised a demand of Rs.2,85,89,968/- by order dated 21.2.2008. Aggrieved thereby, the petitioner preferred an appeal before the second respondent which was, however, dismissed by order dated 8.4.2008. Aggrieved by the said dismissal, petitioner preferred a revision seeking stay of the collection of the disputed tax. It is further stated that to avert the pressure pending appeal and revision, from the first respondent for payment of the tax, the petitioner filed W.P. No. 8743 of 2008 and by order dated 21.4.2008, the said writ petition was disposed of granting stay of collection of disputed tax on condition of the petitioner paying 25% of the disputed tax, which the petitioner has complied with. While so, the second respondent by order dated 23.12.2008 had disposed of the appeal partly allowing the same. Aggrieved by the said order, the petitioner preferred an appeal before the Sales Tax Appellate Tribunal after paying 50% of the disputed tax from out of the total tax of Rs.2,85,89,968/-. Pursuant to the order of dismissal of appeal by the second respondent, the first respondent issued notice dated 5.1.2009 demanding payment of the balance disputed tax under the threat of coercive steps being taken for recovery of the balance disputed tax. Hence, the present writ petition. Heard the learned counsel for the petitioner and the learned Special Standing Counsel for the respondents. As can be seen from the record, a Division Bench of this court by order dated 21.1.2009 in WP MP No. 650 of 3009, has granted ad interim relief subject to the condition of the petitioner furnishing bank guarantee to first respondent to the tune of Rs.1,42,94,484/- on or before 28.1.2009. Learned counsel for the petitioner submits that in compliance of the said order, the petitioner has furnished Bank Guarantee 5659023509 dated 23.1.2009 with Citi Bank, N.A. Hyderabad Branch, situated at Queen’s Plaza, S.P.Road, Begumpet, Secunderabad-3 and it is kept alive. A copy of the bank guarantee is placed on record. In view of the same, the writ petition is disposed of with a direction to the petitioner to keep the said Bank Guarantee No. 5659023509 dated 23.1.2009 with Citi Bank, N.A. Hyderabad Branch, situated at Queen’s Plaza, S.P.Road, Begumpet, Secunderabad-3, alive till the disposal of the appeal before the second respondent. No order as to costs. ____________________ Justice T.Meena Kumari __________________________ Justice Nooty Ramamohana Rao June 9, 2010 MAS