2019 (5) TMI 873 - HC - Service Tax

Grant of stay - condition of pre-deposit complied with - Telangana Entry of Goods into Local Areas Act, 2001 - HELD THAT - At the time of filing of the first appeal, the petitioner had paid 12.5% of the disputed tax. Therefore, the petitioner can be granted stay subject to the imposition of a condition. This is in view of the fact that a batch of writ petitions challenging the vires of the Act are pending on the file of this Court. The writ petitions are disposed of granting interim stay of collection of the balance tax during the pendency of the appeal subject to the condition that the petitioner deposits 12.5% of the demand (in addition to the 12.5% already deposited) within a period of six (6) weeks from the date of receipt of a copy of this order - There will be no order as to costs.

Summary

Issues: Challenge to dismissal of stay petitions pending disposal of first appeal under Telangana Entry of Goods into Local Areas Act, 2001.

In this judgment by the Telangana and Andhra Pradesh High Court, the writ petitions challenged the dismissal of stay petitions pending disposal of the first appeal under the Telangana Entry of Goods into Local Areas Act, 2001. The petitioner had paid 12.5% of the disputed tax at the time of filing the first appeal. The court, comprising of Mr. V. Ramasubramanian and Mr. P. Keshava Rao, JJ., granted an interim stay of the collection of the balance tax during the pendency of the appeal, subject to a condition. The condition imposed required the petitioner to deposit an additional 12.5% of the demand within six weeks from the date of receipt of the court order, making the total deposit 25%. This decision was influenced by the fact that a batch of writ petitions challenging the vires of the Act were pending before the court. The judgment also stated that there would be no order as to costs and that pending miscellaneous petitions, if any, shall stand closed. The common order was delivered by Mr. V. Ramasubramanian.