IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE SEVENTEENTH 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 : 8508 of 2008 Between: M/s. Simhadri Cements Ltd., Alamanda, Vizainagaram Dist., rep. by its Director, Mr.T.Ramsuri. ..... PETITIONER AND 1 The Deputry Commercial Tax Officer, Kothavalasa Unit, Vizainagaram District. 2 The Commercial Tax Officer, M.G.Raod ( East ) Circle, Vizainagaram. 3 The Govt of A.P., rep. by its Secretary, Revenue ( CT-II ) Dept. Secreatariat Buildings, Hyd. 4 M/s. Sri Chakra Cements Ltd., 6-3-668/10/66, Durganagar Colony, Panjagutta, Hyd. .....RESPONDENTS 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 appropriate writ order or direction more particularly one in the nature of writ of mandamus declaring the action of 1st respondent in attaching the property of 4th respondent for recovery of arrears of sales tax payable by the petitioner for the years 1993-94 to 1996-97 and 1998-99 as illegal, arbitrary and unjustified and consequently aside the attachment order dt. 11.02.2004 issued by the 1st respondent under R.R.Act. by granting six equal Monthly installments to the petitioner, to pay the balance outstanding sales tax arrears of Rs. 65,88,077/- and to direct the 3rd respondent to pass appropriate order on the waiver application dated 20-07-2005 of the petitioner relating to the interest. Counsel for the Petitioner:MR.P.GIRISH KUMAR Counsel for the Respondents.: MR.A.RAJASHEKAR REDDY (SPL. STANDING COUNSEL FOR COMMERCIAL TAX) The Court made the following : THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 8508 of 2008 ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari) This writ petition is filed by the petitioner seeking to declare the action of the 1st respondent in attaching the property of 4th respondent for recovery of arrears of sales tax payable by the petitioner for the years 1993-94 to 1996-97 and 1998-99 as illegal, arbitrary and unjustified and consequently to set aside the attachment order dt.11.02.2004 issued by the 1st respondent under R.R.Act., by granting six equal Monthly installments to the petitioner, to pay the balance outstanding sales tax arrears of Rs. 65,88,077/- and to direct the 3rd respondent to pass appropriate order on the waiver application dated 20-07-2005 of the petitioner relating to the interest. It is the case of the petitioner that that the 4th respondent entered into an agreement with the petitioner to take over the assets and liabilities of the petitioner and subsequently, the said agreement was modified, whereby the 4th respondent has taken over only the liability of IDBI and labour. While so, the Sales Tax authorities initiated action against the petitioner under the Revenue Recovery Act attaching the landed property, against which, the 4th respondent filed a claim petition before the 1st respondent, who disposed of the claim petition, but he did not decide the same. The 1st respondent issued notices in Form 7 and 7-A, dated 4.3.2004 and 17.3.2004, which are published in the District Gazettee, proposing to auction the properties. On that, the 4th respondent filed W.P.No.5942 of 2004 questioning the proposed auction, wherein this Court granted stay of auction on condition of payment of Rs.75 lakhs within a period of four weeks and the same was complied with. Later, when the vacate stay petition was filed, the petitioner offered to pay Rs.50 lakhs. Recording the same, the matter was directed to be listed in January, 2005. Accordingly, the petitioner paid Rs.50 lakhs. While so, the petitioner filed WPMP in the earlier writ petition i.e., W.P.No.5942 of 2004 seeking 24 instalments to clear off the differed sales tax of Rs.143.38 lacs. This Court passed an order observing that the application would be considered subject to payment of Rs.25 lakhs and accordingly, the petitioner paid that amount. Subsequently, the petitioner again filed WPMP No.15863 of 2007 seeking 20 instalments to pay the balance amount of Rs.88,88,077/-. But no orders have been passed. According to the petitioner, it has paid Rs.2,02,50,000/- so far and the balance payable is Rs.65,88,077/-. A representation made to the Government to grant waiver of interest on the deferred sales tax is pending final decision. Pending the same, the petitioner proposes to clear the balance outstanding amount in six equal instalaments and hence, it has filed an application in WPNO.5942 of 2004, but the same is dismissed. Hence, the present writ petition has been filed. Heard the learned Counsel for the petitioner and the learned Special Standing Counsel for Commercial Tax and perused the material available on record. In view of the facts and circumstances of the case and in view of the pendency of the earlier W.P.No.5942 of 2004 as to the proposed auction of the property, without expressing any opinion on the merits of the case, We feel it just and proper to direct the petitioner to pay the outstanding balance in instalments. Accordingly, the petitioner shall pay the outstanding balance of Sales Tax of Rs.65,88,077/- within six equal monthly instalments commencing from the month of August, 2008 payable on or before 25th of every succeeding month. Subject to the above direction, this writ petition is disposed of. ________________________ Justice T. Meena Kumari ___________________________ Justice Ramesh Ranganathan Date: 17th July, 2008 Nn. THE HON'BLE MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION No:8508 OF 2008 (Order delivered by the Hon’ble Smt. Justice T. Meena Kumari) 17/07/2008