WP/27446/2007 of M/s.Dhatri Rice Industries, Kesamudram, Warangal Vs The Commercial Tax Officer, on 26 December 2007

1. The Commercial Tax Officer,

Mahabubabad Circle, Warangal District and another.

..Respondents.

HONOURABLE MRS. JUSTICE T.MEENA KUMARI&HONOURABLE MS JUSTICE G. ROHINI

WRIT PETITION No:27446 OF 2007

ORDER: (Per Hon’ble Smt. Justice T. Meena Kumari)

The present writ petition is filed by the petitioner seeking adirection to restrain the 1[st] respondent from taking any coercive stepsfor collection of the disputed tax of Rs.3,49,749/-, penalty ofRs.3,49,749/- and interest of Rs.2,472/- for the assessment year 2005-2006, till disposal of the appeal before the Sales Tax AppellateTribunal.

The main grievance of the petitioner is that an appeal has beenpreferred before the Sales Tax Appellate Tribunal against the orderspassed by the 2[nd] respondent and the same is pending and that thepetitioner has already paid 50% of the disputed tax. While so, takingadvantage of the orders passed by the 2[nd] respondent, the 1[st]respondent is trying to take coercive steps for collection of the disputedtax, penalty and interest. Hence, the present writ petition is preferred.

Heard the learned Counsel appearing for the petitioner and thelearned Special Standing Counsel for Commercial Tax and perusedthe material available on record.

While relying upon the judgment of a Division Bench of thisCourt reported in Delta Lubricants Vs. Deputy Commercial TaxOfficer, Vijayawada[[1]],the learned Counsel for the petitionercontended that 1[st] respondent is not justified in levying tax, penalty and interest in a common order. The learned Counsel furthercontendedthat an appeal is pending before the Sales Tax AppellateTribunal as to the assessment of disputed tax and the petitioner hasalready paid 50% of the disputed tax and at this stage, takingadvantage of the orders passed by the 2[nd] respondent, if the recoveryof the disputed tax and penalty in question is effected, the verypurpose of filing the said appeal, which is a statutory remedy that isavailable to the aggrieved party, would be defeated.

In the facts and circumstances of the case and in view of thependency of the appeal before the Sales Tax Appellate Tribunal,without expressing any opinion on the merits of the case, We feel it a fitcase wherein stay can be granted, but subject to imposition of certainconditions. Accordingly, there shall be stay of recovery of thedisputed tax and penalty till the disposal of the appeal pending beforethe Sales Tax Appellate Tribunal subject to the condition of thepetitioner depositing 50% of the disputed tax, within a period of threeweeks from today, and the interest in full, within a period of one weekfrom today. However, it is made clear that the amount paid if any,shall be given credit to the above stipulated sum. The tribunal isdirected to dispose of the appeal within a period of three months fromthe date of receipt of a copy of this order.

Subject to the above direction, the writ petition is disposed of.No order as to costs.

_______________________

Justice T. Meena Kumari

_________________

Justice G. Rohini

Date: 26[th] December, 2007Note:Communicate by wireAt party’s costs. (BO)

Nn.

HONOURABLE MRS. JUSTICE T.MEENA KUMARI&

HONOURABLE MS JUSTICE G. ROHINI

WRIT PETITION No:27446 OF 2007

(Order delivered by the Hon’ble Smt. Justice T. Meena Kumari)

26/12/2007