M/S Pennar Industries Ltd vs State Of A.P. & Ors

The Supreme Court held that the Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 permits the levy of tax, but the discretion to grant interim stay must be exercised judiciously. The Court emphasized that stay applications should not be disposed of casually and must consider the factual scenario, especially where denial of relief could lead to irreparable harm. The Court directed that no further deposit is required until the writ petition is disposed of, without expressing any opinion on the merits of the case.