Interim stay of tax recovery was conditioned on partial deposit, with the Court stressing consistency in interim relief.

Interim stay of recovery under the Andhra Pradesh Value Added Tax Act was considered in a writ challenge where the petitioner asserted that it was rendering services and had already paid service tax. The Court noted that similar matters had been admitted and that comparable interim relief had been granted subject to payment of one-third of the disputed tax. It further observed that interim orders are not precedents, but consistency and uniformity in interim relief should be maintained pending final hearing. Ad interim stay of recovery was granted subject to payment of one-third of the disputed tax within eight weeks, with credit for any amount already paid.

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Issues: Whether interim stay of recovery of tax demand under the Andhra Pradesh Value Added Tax Act, 2005 should be granted pending disposal of the writ petition, and whether such stay should be made subject to deposit of one-third of the disputed tax.

Analysis: The petition raised a challenge to the recovery proceedings on the ground that the petitioner was rendering services and had already been paying service tax. The Court noted that similar matters had been admitted and that, in comparable cases, recovery had been stayed on condition of payment of one-third of the tax demand. It also noted that interim orders are not precedents, but held that consistency and uniformity in interim relief should be maintained pending final hearing.

Outcome: Ad interim stay of recovery was granted, subject to payment of one-third of the disputed tax within eight weeks, with credit to be given for any amount already paid.

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