IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE FOURTEENTH 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 : 13920 of 2009 Between: M/s. Shanmuganand & Sons, 7-2-1037/12, Tualsinagar, Sanathnagar, Hyderabad - 500 018, Rep. by its Partner, Mr. G. Srinath. ..... PETITIONER AND 1 The Commercial Tax Officer, Sanathnagar Circle, Hyderabad. 2 The Commercial Tax Officer, Jubilee Hills Circle, Hyderabad. 3 The Appellate Deputy Commissioner (CT), Punjagutta Division, Hyderabad. 4 The Additional Commissioner (CT) Legal, Andhra Pradesh, Hyderabad. 5 The Deputy Commissioner (CT), Punjagutta, Hyderabad. 6 The State of Andhra Pradesh, Rep. by its Secretary (Revenue), 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 anyother appropriate Writ or order or direction - (a) declaring that Rule 59 of APVAT Rules as ultravires to Section 2(4) of the APVAT Act since it travels beyond the scope of Section 2(4) of APVAT Act, 2005; and (b) Consequently, set aisde the impugned order passed by the 4th Respndent dated 19-6-2009 in CCTs Ref.LIII(2)/229/2009 and restrain the 1st Respondent from taking any coercive steps for recovery of balance disputed tax of Rs. 4,66,260/- out of total disputed tax of Rs. 8,91,216/- and penalty of Rs. 8,92,216/- in pursuance of the notice dated 2-7-2009 pending disposal of the appeal before the 3rd Respondent and pass Counsel for the Petitioner:MR.BHASKAR REDDY VEMIREDDY Counsel for the Respondent No.: GP FOR COMMERCIAL TAX The Court made the following : THE HON'BLE MR JUSTICE GHULAM MOHAMMED and THE HON'BLE MR JUSTICE VILAS V. AFZULPURKAR W.P.No. 13920 OF 2009 ORDER: (Per Ghulam Mohammed, J) This writ petition is filed seeking a writ of Mandamus to declare the Rule 59 of the Andhra Pradesh Value Added Tax Rules (for short ‘the Rules’) as ultravires to Section 2(4) of the Andhra Pradesh Value Added Tax Act,2005 ( for short ‘the Act’), since it travels beyond the scope of Section 2(4) of the Act, and consequently set-aside the impugned order dated 19.6.2009. 2. Heard the learned counsel on either side and on their request, the writ petition itself is being taken up for disposal at the stage of admission. 3. The grievance of the petitioner is that Rule 59 of the Rules is ultravires to Section 2 (4) of the Act, since it travels beyond the scope of Section 2(4) of the Act, but the learned counsel for the petitioner submits that he is not pressing the validity of Rule 59 of the Rules in this case only. 4. The petitioner filed two separate appeals i.e. one is against the assessment of value added tax and another is against levying penalty before the third respondent and the same are pending. Along with the appeals, the petitioner also filed an application seeking stay of recovery of value added tax and penalty, but however, the stay application was rejected by the appellate authority and it was confirmed by the revisional authority. 5. Having regard to the facts and circumstances of the case and since the petitioner is prepared to pay some amount towards disputed tax and penalty, we deem it appropriate to grant stay of recovery of disputed value added tax and penalty on condition of petitioner depositing half of the amount demanded towards disputed tax and 25% of the penalty imposed by the primary authority, within a period of six weeks from today, pending disposal of the appeals. If any amount is paid, the same shall be given credit to. Further, the appellate authority is directed to dispose of the appeals as expeditiously as possible in accordance with law. 6. The writ petition is, accordingly, disposed of. No costs. _____________________ GHULAM MOHAMMED,J _____________________ VILAS V. AFZULPURKAR 14-07-2009 Stp/Kl ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1) 2 CD copies Form-NIC-OGS/WP{SPJS}