IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE SIXTH DAY OF MAY TWO THOUSAND AND NINE PRESENT THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE B.CHANDRA KUMAR WRIT PETITION NO : 9841 of 2009 Between: M/s. Sri Jayalaskhmi Spinning Mills Ltd. Jayalakshminagar, Chebrolu - 522 212, Guntur District, Rep by its Managing Director, Mr. R. Srinivas. ..... PETITIONER AND 1 The Commercial Tax Officer, Gandhi Chowk Circle, Tenali. 2 The Joint Commissioner (CT) Legal, Andhra Pradesh, Hyderabad. 3 The Deputy Commercial Tax Officer - I, Gandhi Chowk Circle, Tenali. .....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 writ of mandamus or any other appropriate Writ or order or direction declaring the action of the 2nd respondent in - -rejecting the stay application of the petitioner dated 1 in CCT's Ref.No. LV(4)/111/2009 for the year 2004-2005 under the CST Act as arbitrary, contrary to law and in violation of principles of natural justice and consequently grant stay of collection of balance disputed tax of Rs. 5,76,122/- out of the total disputed tax of Rs. 9,36,644/- under the CST Act for the assessment year 2004-2005, pending disposal of the appeal before the Hon’ble Sales Tax Appellate Tribunal. Counsel for the Petitioner: SRI M.V.PAVAN KUMAR Counsel for the Respondents.: GP FOR COMMERCIAL TAX The Court made the following : THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE B.CHANDRA KUMAR WRIT PETITION NO : 9841 of 2009 ORDER: (Per Hon’ble Smt. Justice T.Meena Kumari) This writ petition is filed seeking to declare the action of the 2nd respondent in rejecting the stay application of the petitioner vide order, dated 17.3.2009 in CCT's Ref.No. LV(4)/111/2009 for the assessment year 2004-2005, as arbitrary and illegal and consequently, to grant stay of collection of the balance disputed tax of Rs.5,76,122/- out of the total disputed tax of Rs.9,36,644/-, pending disposal of the appeal before the Sales Tax Appellate Tribunal. It is the case of the petitioner that aggrieved by the order passed by the 1st appellate authority, an appeal has been preferred before the Sales Tax Appellate Tribunal and at the same time, the petitioner also filed an application seeking stay of collection of the disputed tax, but the said stay application was rejected by the 2nd respondent. Hence, the present writ petition has been filed. Heard the learned Counsel appearing for the petitioner and the learned Government Pleader for Commercial Tax and perused the material available on record. It is the contention of the learned Counsel for the petitioner that the petitioner has preferred an appeal before the Sales Tax Appellate Tribunal and the same is pending and taking advantage of the proceedings issued by the 2nd respondent refusing to grant stay of collection of the balance disputed tax, pending the appeal, the authorities are trying to take coercive steps and in these circumstances, if the stay is not granted and if the entire disputed tax is recovered, the very purpose of filing the appeal would be defeated. In the facts and circumstances of the case and in view of the fact that the appeal is pending before the Tribunal, without expressing any opinion on the merits of the case, we feel it a fit case wherein stay can be granted, but subject to certain conditions. Accordingly, there shall be stay of recovery of the balance disputed tax of Rs.5,76,122/- for the assessment year 2004-05, pending disposal of the appeal before the Tribunal, subject to the condition of the petitioner depositing 50% of the disputed tax, within a period of eight weeks from today. However, it is made clear that the amount already paid, if any, 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 B. Chandra Kumar Date: 6th May, 2009 Gurc/nn. THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE B. CHANDRA KUMAR WRIT PETITION NO : 9841 of 2009 (Order of the Division Bench delivered by the Hon’ble Sri Justice T.Meena Kumari) 06.05.2009