IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY SECOND 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 : 15641 of 2008 Between: Tata Sky Ltd a Company Regd under the provisions of Companies Act1956 Having its Regd office 3rd Floor Bombay Dyeing A.O Buiding Pandurang Budhakar Marg Worli Mumbai 400025 Rep.by its Chief Finance Officer Mr.Atul Bansal ..... PETITIONER AND 1 The State of A.P Rep.by its Principal Secretary Commercial Taxes Secretariat Buildings,Hyderabad 2 Commissioner of Commerical Taxes Hyderabad 3 Additional Commissioner/Joint Commissioner Commercial Taxes Panjagutta,Hyderabad 4 Deputy Commissioner of Commercial Taxes Appeals,Panjagutta,Hyderabad 5 Assistant Commissioner Commercial Taxes Begumpet Division Ameerpet, Hyderabad 6 Commercial Taxe officer Marredpally 6th Floor Pavani Prestige Ameerpet Hyderabad 7 Deputy Commercial Taxes Officer Marredpally 6th Floor Pavani Prestige Ameerpet, 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 issue a writ order or direction more particularly one in the nature of writ of Certiorari calling for the records pertaining to the penalty order passed by the 5th respondent dt.03-03-2008 purportedly in exercise of the powers under section 53 of the Andhra Pradesh Value Added Tax act 2005 imposing a penalty of Rs 30,24,140/- the orders of the 4th respondent in Appeal BV/2/2008-09 dt.04-04-2008 rejecting the application of stay and the consequent order passed by the 7th respondent vide orders Distrained dt.10-07-2008 received on 15-07-2008 and other relevant records and further issue a writ or direction more particularly one in the nature of Mandamus declaring the same as arbitrary illegal and unconstitutional being in gross violation of the Articles 14,19,246,301 of the constitution of India and also in violation of the decision rendered by the Hon'ble Supreme Court of India in the case of BSNL Vs Union of India reported in 2006(3) SCC page 1 and consequently set aside the same and to pass such other order or orders. Counsel for the Petitioner: PANASIA ADVOCATES AND CONSULTANTS Counsel for the Respondents: GP FOR COMMERCIAL TAX The Court made the following : THE HON’BLE MRS. JUSTICE T. MEENA KUMARI AND THE HON’BLE MR. JUSTICE RAMESH RANGANATHAN W.P.NO. 15641 OF 2008 ORDER: (Per Smt. T. Meena Kumari, J) The present writ petition has been filed challenging the penalty order passed by the 5th respondent dt.03-03-2008 purportedly in exercise of the powers under section 53 of the Andhra Pradesh Value Added Tax act 2005 imposing a penalty of Rs 30,24,140/- and the orders of the 4th respondent in Appeal BV/2/2008-09 dt.04-04-2008 rejecting the application of stay and the consequential distrained order passed by the 7th respondent dt.10-07-2008. The petitioner was assessed to tax and a form VAT 203 was issued by the 5th respondent levying penalty under Section 53 (1) of the APVAT Act for the period August, 2006 to July, 2007. The petitioner filed an appeal against the order of the 5th respondent. Along with the appeal, the petitioner also filed an application for stay of the collection of disputed penalty of Rs.30,24,140/-. However, the said application for stay was rejected by the appellate authority. In the meanwhile a distrained order dated 10.7.2008 was issued by the 7th respondent for recovery of the disputed penalty. We are of the opinion that ends of justice would have been met if stay was granted pending disposal of the appeal. Accordingly we stay the collection of disputed penalty subject to deposit of one fourth of the disputed tax penalty by the petitioner within a period of six weeks from today and the respondents are directed not to take coercive steps for recovery of the disputed penalty, pending appeal before the appellate authority. If any amount paid earlier shall be given credit to. The writ petition is accordingly disposed of. No order as to costs. ___________________ T. MEENA KUMARI, J _________________________ RAMESH RANGANATHAN, J Dt.22.7.2008 NB: Operative Portion by wire at party’s costs. /BO/ KR ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1 The State of A.P Rep.by its Principal Secretary Commercial Taxes Secretariat Buildings,Hyderabad 2 Commissioner of Commerical Taxes Hyderabad 3 Additional Commissioner/Joint Commissioner Commercial Taxes Panjagutta,Hyderabad 4 Deputy Commissioner of Commercial Taxes Appeals,Panjagutta,Hyderabad 5 Assistant Commissioner Commercial Taxes Begumpet Division Ameerpet, Hyderabad 6 Commercial Taxe officer Marredpally 6th Floor Pavani Prestige Ameerpet Hyderabad 7 Deputy Commercial Taxes Officer Marredpally 6th Floor Pavani Prestige Ameerpet, Hyderabad 8. 2 CCs to GP for Commercial Tax 9. 2 CD copies Form-NIC-OGS/WP{BMR}