THE HON’BLE Smt. JUSTICE T.MEENA KUMARI AND THE HON’BLE Ms. JUSTICE G.ROHINI WRIT PETITION No. 1191 OF 2008 O R D E R: (Per THE HON’BLE Smt. JUSTICE T.MEENA KUMARI) This writ petition is filed seeking to grant stay of collection of the disputed penalty of Rs.23,43,690/- for the tax period from April 2005 to March 2007 arising in pursuance of the stay rejection proceedings of the 3rd respondent dated 10.1.2008 passed in Appeal No. S/57/2007-2008-VAT pending disposal of the appeal before the 3rd respondent. The case of the petitioner is that the petitioner is a public limited company engaged in the business of manufacturing and marketing of edible oils and is an assessee on the rolls of the 1st respondent. The 2nd respondent by his proceedings dated 29.6.2007 passed in Form VAT 305 made an assessment of value added tax for the period from April, 2005 to March, 2007 requiring the petitioner to pay a further tax of Rs.23,43,690/-. Against the said order, the petitioner filed an appeal before the 3rd respondent and the same is pending before him. While the said appeal is pending, the 2nd respondent also initiated penalty proceedings by his proceedings dated 5.12.2007 and issued Form VAT 203 levying a penalty of Rs.23,43,690/- at 100% on the tax levied. Aggrieved by the said penalty order, the petitioner filed an appeal before the 3rd respondent along with the petition seeking stay of collection of the disputed penalty of Rs.23,43,690/-. The contention of the petitioner is that even before the petitioner could file the revision petition before the 4th respondent, the 2nd respondent issued notice dated 23.1.2008 requiring the petitioner to deposit the disputed penalty. Hence, this writ petition. Heard the learned counsel for the petitioner and the learned Special Standing Counsel for the respondents. The controversy is that pending an appeal, application for stay was dismissed by the Competent Authority. We have gone through the record. We feel that the interest of justice would have been met if stay was granted pending appeal, subject to deposit of 1/4th of the liability. Therefore, we set aside the impugned order and direct that 1/4th of the penalty and interest shall be paid by the petitioner within a period of six weeks from the date of receipt of a copy of this order. For such period, there shall be an unconditional stay and stay shall continue till disposal of the appeal, provided the amount is deposited within the stipulated time. The deposit of amount shall be without prejudice to the rights of the petitioner in appeal. If any amount has already been paid by the petitioner, the same shall be given credit. The writ petition is accordingly disposed of. No costs. T.MEENA KUMARI, J. G.ROHINI, J. January 25, 2008 Note: Operative portion by wire At party’s costs. (BO) MVB.