ORDER
P. Vishwanatha Shetty, J.
1. Sri T.K. Vedamurthy, learned Government Pleader, is directed to take notice.
2. Though this writ petition is posted for preliminary hearing, with the consent of the learned counsel appearing for the parties is taken up for hearing and disposed of by this order.
3. In this petition, the petitioner has prayed for a direction to the first respondent not to take any coercive steps to recover the arrears of tax pursuant to the order of assessment dated May 8, 2000 against the petitioner.
4. In this petition, the petitioner has sought for a direction to the respondents not to enforce demand notified in terms of the notice dated May 8, 2000 copies of which have been produced as annexures A and A1 for the purpose of recovery of taxes assessed for the assessment year 1993-94 till the disposal of the second appeal filed by the petitioner challenging the correctness of the order of assessment and also the order made dismissing the appeal filed challenging the said order of assessment.
5. Sri S.V. Subramanyam, learned counsel appearing for the petitioner submits, that since the second appellate authority has no power to grant an interim order of stay, staying the recovery of amount due by the petitioner, if the authorities are allowed to proceed to recover tax from the petitioner in terms of the order of assessment made, the petitioner would be put to irreparable injury and hardship. The learned counsel further submits that having regard to the facts and circumstances of the case, this is a fit case where this Court should exercise its power under Articles 226 and 227 of the Constitution of India and direct stay of recovery of amount due from the petitioner by the authorities, till the disposal of the second appeal filed by the petitioner.
6. However, Sri T.K. Vedamurthy, learned Government Pleader, submitted that there is no justification to grant the relief sought for by the petitioner.
7. It is not in dispute that the second appeal filed by the petitioner is pending consideration before the appellate authority. Since the second appellate authority has no power to grant an interim order staying the order impugned and since the petitioner has already filed a second appeal as provided under Section 22 of the Karnataka Sales Tax Act, 1957, I am of the view that the interest of justice will be met and the hardship pleaded by the petitioner can be obviated, if an order is made directing the authorities not to take coercive steps against the petitioner for recovery of arrears of tax pursuant to the orders of assessment made against the petitioner and the notices issued as per annexures A and Al is directed not be given effect to till the disposal of appeal in STA No. 944 of 2001 pending before the Tribunal, subject to the condition that the petitioner deposits 25 per cent of the tax amount due and 20 per cent of the penalty levied within two weeks from today and another 25 per cent of tax amount and 20 per cent of the penalty within two weeks thereafter. If the petitioner fails to pay the amount as stated above, the authorities are reserved liberty to take coercive steps to recover the amount due from the petitioner.
8. Further, the second appellate authority is also directed to dispose of the appeal STA No. 944 of 2001 as expeditiously as possible, at any event of the matter, not later than four months from the date of receipt of this order.
9. Sri T.K. Vedamurthy, learned Government Pleader, is given four weeks time to file his memo of appearance.