IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE FIFTEENTH DAY OF APRIL TWO THOUSAND AND NINE PRESENT HON'BLE THE CHIEF JUSTICE SRI ANIL R. DAVE AND HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.5434 of 2009 Between: M/s. Andhra Organics Limited, Represented by its Executive Director, Mr. N. Prasanth, Plot No.110-A, IDA, Pydibhimavaram, Srikakulam District. ...Petitioner And 1. Assistant Commissioner (CT), LTU, Vizianagaram Division, Vizianagaram. 2. The Appellate Deputy Commissioner (CT), Visakhapatnam. 3. The Joint Commissioner (CT) Legal, Andhra Pradesh, Hyderabad. 4. The Andhra Bank, Represented by its Manager Vizianagaram Branch, Vizianagaram. ...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 a Writ of Certiorari quashing the order of the 3rd respondent in CCTs Ref. No. LV(3)/110/2009, dated 20-2-2009 as illegal, arbitrary and unjustified and consequently restrain the 1st respondent from taking any coercive steps for recovery of the disputed tax of Rs.24,74,032/-, penalty of Rs.5,80,574/- and interest of Rs.5,32,910/- for the tax period 2006-07 and also set aside the garnishee notice dated 17-2-2009 issued by the 1st respondent to the 4th respondent. Counsel for the petitioner : Sri S. Dwarakanath Counsel for the respondents : Sri K. Raji Reddy, Special Standing Counsel for Commercial Taxes. The Court made the following: ORDER: (Per Sri Anil R. Dave, C.J.) Learned Advocate appearing for the petitioner prays for deletion of respondent No.4 in the writ petition. Permission is granted. Respondent No.4 is deleted. Rule. Service of rule is waived by learned Special Standing Counsel for Commercial Taxes, Sri K. Raji Reddy, appearing for the respondents. At the request of the learned Advocates, the petition is finally heard today. The petitioner has been aggrieved by the order dated 20th February, 2009, which has been passed by respondent No.3. The said order was passed in an application for stay of recovery filed by the petitioner during the pendency of the appeal. The appeal is pending before respondent No.2 – Appellate Deputy Commissioner (CT) Legal, Visakhapatnam. By virtue of an interim order dated 18th March, 2009 passed by this Court, the petitioner has already paid 50% of the tax, which has been disputed before the appellate authority. Looking to the facts of the case, in our opinion, it would be in the interest of justice if the appeal filed by the petitioner against the assessment order dated 17th September, 2008 is heard by respondent No.2, the appellate authority, at an early date. In the circumstances, it is directed that respondent No.2 shall give priority to the afore-stated appeal, which is pending before him. During the pendency of the afore-stated appeal, the petitioner shall not be called upon to pay any further amount in pursuance of the impugned assessment order as the petitioner has already paid 50% of the disputed amount of tax. The respondent authorities shall give an intimation to Andhra Bank, Vizianagaram Branch that the garnishee order, which had been issued by the respondent authorities, shall not operate. In the above circumstances, the petition stands disposed of as partly allowed to the above extent, with no order as to costs. The interim order dated 18th March, 2009 passed by this Court shall continue to operate till the appeal pending before respondent No.2 is finally decided. ANIL R. DAVE, C.J. 15th April, 2009 RAMESH RANGANATHAN, J. To 1. Assistant Commissioner (CT), LTU, Vizianagaram Division, Vizianagaram. 2. The Appellate Deputy Commissioner (CT), Visakhapatnam. 3. The Joint Commissioner (CT) Legal, Andhra Pradesh, Hyderabad. 4. Two copies to the Special Standing Counsel for Commercial Taxes, High Court Buildings, Hyderabad (OUT). 5. Two CD copies. ARS