Stay of penalty recovery pending first appeal was granted where tax-related conditions had already been complied with.

Under the Andhra Pradesh Value Added Tax Act, 2005, the court considered whether recovery of penalty could be stayed pending disposal of the first appeal. The writ petition was confined to the penalty component, while the earlier challenge to the tax component had already been allowed subject to conditions, and those conditions were stated to have been complied with. In that factual setting, the court found the request fit for grant and stayed recovery of the penalty until the first appeal is decided.

---

---

Issues: Whether the dealer, under the Andhra Pradesh Value Added Tax Act, 2005, was entitled to a stay of recovery of penalty pending disposal of the first appeal.

Analysis: The writ petition concerned only the penalty component, while the earlier challenge to the tax component had already been allowed subject to conditions and those conditions were stated to have been complied with. In that backdrop, the prayer for stay of recovery of penalty pending the first appeal was considered fit for grant.

Conclusion: The stay of recovery of penalty was granted pending disposal of the first appeal.

---