IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE TWENTY SIXTH DAY OF MARCH TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE B.PRAKASH RAO and THE HON'BLE MR JUSTICE C.Y.SOMAYAJULU WRIT PETITION NO : 6443 of 2008 Between: M/s.R.V. Subba Reddy, Nandyal, Rep. by Sri R.V. Subba Reddy, S/o.Subba Reddy, Aged about 50 years, Kurnool District. ..... PETITIONER AND 1 The Additional Commissioner of Commercial Taxes (Legal), office of Commissioner of Commercial TAxes M.J.Road,Nampally,Hyderabad 2 The Deputy Commissioner of Commercial Taxes Kurnool Division, Kurnool 3 The Commercial Tax Officer, No.II circle Nandyal, Kurnool District .....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 an appropriate writ order or direction in the nature of writ of mandamus declaring the action of the 1st respondent in dismissing the stay petition without appreciating the contentions raised by the petitioner with reference to the jurisdiction of the authority in levying penalty and the rate adopted therein in as illegal, contrary, unjust and contrary to Section 10A Read with Section 8(2) of the Central Sales Tax, Act as also the catena of decisions rendered by the Hon'ble Apex Court, this Hon'ble Court and various other High Courts and consequently to forbear the 3rd respondent and any other authority from collecting the balance of the disputed penalty of Rs.6,64,233/- out of the total penalty of Rs. 33,50,100/- pending disposal of the appeal before the Sales Tax Appellate Tribunal, Visakhapatnam and grant Respondent not to take any coercive steps for recovery of the balance of the disputed tax pending appeal and grant such other relief or reliefs as are deemed fit and proper in the ends of justice. Counsel for the Petitioner:MR.M.V.J.K.KUMAR Counsel for the Respondents: Sri K.RAJI REDDY, SPECIAL STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : THE HON'BLE MR JUSTICE B.PRAKASH RAO AND THE HON'BLE MR JUSTICE C.Y.SOMAYAJULU WRIT PETITION No.6443 of 2008 ORDER: (Per Hon’ble Sri Justice B.Prakash Rao) Heard Sri M.V.J.K. Kumar, learned Counsel for the petitioner and Sri K.Raji Reddy, learned Special Standing counsel for Commercial Tax, who takes notice on behalf of the respondents, and at their request, the main writ petition itself is taken up for disposal. 2. Aggrieved against the orders in not granting stay pending substantive appeal filed before the Sales Tax Appellate Tribunal, this writ petition is filed. 3. It is submitted that the lower appellate Tribunal has initially allowed the appeal filed by the petitioner apparently, in respect of the penalty and it is only in regard to the extent of the portion which is not allowed and which comes to Rs.6,64,233/-, the present appeal has been filed and no stay has been granted, Hence the petition. Having heard the Counsel and on perusal of the material, since the main appeal is still pending, we refrain from going into the merits of the main appeal. However, there shall be stay in regard to the subject matter of the present appeal on the file of the Sales Tax Appellate Tribunal with certain conditions. Accordingly, the writ petition is disposed of granting stay of collection of penalty subject to the condition of the petitioner depositing 1/4th of Rs.6,64,233/- (Rupees Six Lakhs Sixty Four Thousand and Two Hundred and Thirty Three only) in regard to the subject matter of the appeal before the Sales Tax Appellate Authority, within a period of six weeks from today and the appeal shall be disposed of on merits and in accordance with law. There shall be no order as to costs. __________________ B.PRAKASH RAO, J. __________________ C.Y.SOMAYAJULU, J. Date:26.03.2008. GS ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{SPJS}