IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE FIFTEENTH DAY OF JULY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 15116 of 2008 Between: M/s. Watsol Organics Limited, Plot No.32, 8-3-1010, 6th Floor, Vijaya Enclave, Srinagar Colony, Hyderabad - 500 073, rep. by its Chief Financial Officer Mr.V.S.Soma. ..... PETITIONER AND 1 The Commercial Tax Officer, Gandhinagar Circle, Hyderabad. 2 The Appellate Deputy Commissioner (CT) Secunderabad 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 a Writ of Certiorari or any other appropriate writ or order or direction quashing the order of the 2nd Respondent in refusing to grant stay of collection of disputed penalty of Rs.2,81,845/- pending disposal of the appeal as illegal, arbitrary and contrary to law and consequently restrain the 1st Respondent from taking any coercive steps for recovery of disputed penalty of Rs.2,81,945/- pending disposal of appeal before the 2nd Respondent for the tax period April and May 2005 and December 2006 to March 2007, and pass such other order or orders. Counsel for the Petitioner:MR.S.DWARAKANATH Counsel for the Respondents : SRI A.V. KRISHNA KAUNDINYA (SPL.SC FOR CT) The Court made the following : THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 15116 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) The present writ petition is filed by the petitioner seeking to quash the order of the 2nd Respondent in refusing to grant stay of collection of disputed penalty of Rs.2,81,845/- pending disposal of the appeal, as illegal and arbitrary and consequently, to restrain the 1st Respondent from taking any coercive steps for recovery of the disputed penalty, pending disposal of appeal before the 2nd Respondent for the tax period April and May 2005 and December 2006 to March 2007. The main grievance of the petitioner is that aggrieved by the order passed by the 1st respondent levying penalty, an appeal has been filed before the 2nd respondent. Along with the appeal, the petitioner also filed an application seeking stay of collection of the penalty. But the 2nd respondent refused to grant stay. Taking advantage of rejection of the stay petition, the 1st respondent is insisting for payment of the disputed penalty. Hence, the petitioner filed the present writ petition. Heard the learned Counsel for the petitioner and the learned Standing Counsel for Commercial Tax and perused the material available on record. The learned Counsel for the petitioner contended that against penalty proceedings, an appeal has been filed before the 2nd respondent and the same is pending and at this juncture, if the relief as to the stay of collection of the disputed penalty is not entertained and if the recovery of the disputed penalty is effected during the pendency of the appeal, the very purpose of filing the said appeal, which is a statutory remedy that is available to the aggrieved party, would be defeated. In the facts and circumstances of the case and in view of the pendency of the appeal before the 2nd respondent, without expressing any opinion on the merits of the case, We feel it a fit case wherein stay can be granted, but subject to imposition of certain conditions. Accordingly, there shall be stay of recovery of the disputed penalty, till disposal of the appeal pending before the 2nd respondent, subject to the condition of the petitioner depositing 25% of the disputed penalty, within a period of six (6) weeks from today. However, it is made clear that the penalty amount, if any already paid, 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 Ramesh Ranganathan Date: 15th July, 2008 Nn. THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION No:15116 OF 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 15/07/2008