IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE FIRST DAY OF JULY TWO THOUSAND AND NINE PRESENT THE HON'BLE THE CHIEF JUSTICE SRI ANIL R. DAVE AND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 12962 of 2009 Between: M/s. G.S. Oils Limited, G.S. Nagar, Industrial Area, Rampur Road, Adilabad, Rep. by its Managing Director, Manoj Kumar Makhariya. ..... PETITIONER AND 1 The Additional Commissioner (CT), Legal, 2nd Floor, Commercial Taxes Complex; Opp: Gandhi Bhavan, Nampally, Hyderabad. 2 Appellate Deputy Commissioner (CT), Warangal Division, Kuda Complex, Ground Floor, Hanamkonda, Warangal District. 3 The Assistant Commissioner (CT) LTU, Adilabad Division, 1st Floor, Ashok Road, Vinayak Chowk, Municipal Complex, Adilabad - 504 001. .....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 a writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the impugned order dated 31-3-2009 passed by the 1st respondent in CCT's Ref. No.LIII (1)168/2008 rejecting stay of collection of disputed tax of Rs.1,14,07,688/- as illegal, arbitrary, unjust and contrary to the facts and law. Counsel for the Petitioner: MR. S. R. R. VISWANATH Counsel for the Respondents: MR. A.V. KRISHNA KOUNDINYA, SPECIAL STANDING COUNSEL FOR COMMERCIAL TAXES The Court made the following : ORDER: (per Sri Ramesh Ranganathan, J) Heard Sri S.R.R. Viswananth, learned Counsel for the petitioner and Sri A.V. Krishna Koundinya, learned Special Standing Counsel for Commercial Taxes, and with their consent the Writ Petition is taken up for final disposal at the stage of admission. By the impugned order of the Additional Commissioner (CT), Legal, dt.31.3.2009, the stay petition filed by the petitioner pending disposal of the second appeal before the Sales Tax Appellate Tribunal (STAT), was dismissed. The demanded amounts in dispute are levy of purchase tax of Rs.13,90,845/- under Section 4(4) of the Andhra Pradesh Value Added Tax Act, 2005 on Kapas, denial of input tax credit of Rs.75,16,430/- on local sales of cotton lint derived from tax paid Kapas and denial of deferment of Rs.25,00,413/- on Soya D.O.C. A substantial part of disputed tax relates to cotton kapas. Learned Counsel for the petitioner has drawn attention of this Court to Sections 14(ii) an 15(a) of the Central Sales Tax Act, 1956 to contend that since the tax due on cotton lint has already been paid, no purchase tax can be levied upon cotton kapas. While this submission, prima facie, appears to have some merit, since the appeal is pending before the STAT, we do not consider it appropriate to examine the contentions urged by the learned Counsel for the petitioner in detail, as any opinion expressed by us would have a bearing on the appeal. In the facts and circumstances of the case, and in the light of the contentions raised, we consider it appropriate to direct the respondents not to take any coercive steps against the petitioner for recovery of the disputed tax, pending disposal of the appeal before the STAT, subject to the condition that the petitioner deposits fifty percent (50%) of the disputed tax within four weeks from today. The amount of tax already paid by the petitioner shall be given credit to. With the above directions, the Writ Petition is disposed of. There shall be no order as to costs. _______________ ANIL R. DAVE, CJ _______________________ RAMESH RANGANATHAN, J 01.7.2009 bnr