THE HONOURABLE SRI JUSTICE GODA RAGHURAM AND THE HONOURABLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION Nos. 8546 of 2009 Dated: 28-8-2009 Between: M/s Sri Ganesh Home Industries, rep. by its Proprietor K.Naga Kumar …Petitioner and The Commissioner of Commercial Taxes, A.P. Hyderabad and another. …Respondents ORDER: (Per GR, J) The determination of penalty and interest by the order of the Assistant Commissioner, (CT) (Audit), Office of the Deputy Commissioner (CT) Division, Kadapa dated 13-4-2009 for the period April, 2008 to January, 2009, is assailed in this writ petition. The penalty and interest was determined and computed on the basis that Masala Powders like Rasam Powder, Sambar Powder, Garam Masala Powder etc., are liable to tax as per the circular instructions of the Commissioner of Commercial Taxes, dated 20-11-2008. These circular instructions have since been superceded by the orders of the Government in Memo No. 6322/CT.II(1)/2009-1, dated 17- 7-2009 issued in exercise of powers under Section 76 (1) of the AP VAT Act, 2005 (for short ‘the Act’) clarifying that Masala Powders like Rasam Powder, Sambar Powder, Garam Masala Powder etc., shall be classified under Entry 59 of Schedule IV of the Act. In the light of this clarification issued by the State Government by the Memo dated 17-7-2009, the imposition of penalty and interest on the basis of the earlier and eclipsed circular of the Commissioner of Commercial taxes dated 20-11-2008 cannot be sustained. The impugned order dated 13-4-2009 is accordingly quashed. The writ petition is accordingly allowed. No costs. __________________________ GODA RAGHURAM, J ______________________________ RAMESH RANGANATHAN, J 28th August, 2009 GRR