THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.7781 of 2008 ORDER: (Per Hon’ble Sri Justice RAMESH RANGANATHAN) Pursuant to an order placed by the 7th respondent, the petitioner supplied 96,500 ISI 450 mm ceramic Indian water closets with P-trap and foot rest of a total value exceeding Rs.1.66 Crores. The State Government issued G.O.Ms.No.367 dated 26.2.2002 notifying levy of entry tax at 8% on ceramic sanitary ware under the Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 (for brevity ‘the Act’). The 6th respondent, vide letter dated 2.10.2004, informed the petitioner that the Deputy Commissioner (CT), Vizianagaram had informed that ceramic sanitary ware was exigible to entry tax at 8% amounting to Rs.13,29,790/-. Pursuant to a reply submitted by the petitioner thereto, the 7th respondent again sought a clarification to which the Deputy Commissioner is said to have reiterated that entry tax for a sum of Rs.13,29,790/- was payable by the petitioner. The 3rd respondent passed an assessment order on 30.11.2004 levying tax of Rs.13,29,788/-. Aggrieved thereby the petitioner filed W.P.No.22932 of 2004 before this Court. This Court, while admitting the writ petition, observed that while all other proceedings may go on, the assessment order should not be given effect to. Another assessment order dated 29.1.2005 was passed by the 3rd respondent levying entry tax at 8% on supply of 15,300 ceramic Indian water closets supplied to the District Collector & Chairman, DWSC, Srikakulam. Challenging the said levy, an appeal was filed before the Appellate Deputy Commissioner by the Member Secretary, DWSC, Srikakulam which was allowed by order dated 15.12.2005 holding that vitreous sanitary ware was not exigible to entry tax. Consequent thereto, the petitioner filed miscellaneous application W.P.M.P.No.29363 of 2006 for withdrawal of Writ Petition No.22932 of 2004 to pursue the appellate remedy. The said writ petition was dismissed giving liberty to the petitioner to file an appeal against the assessment order dated 30.11.2004. The petitioner filed an appeal on 4.12.2006 which was allowed on 12.2.2007 by the Appellate Deputy Commissioner. Consequent thereto the petitioner requested the District Collector to release the withheld amount of Rs.13,29,788/-. However, the Joint Commissioner (2nd respondent herein) issued show cause notice dated 8.1.2008 calling upon the petitioner to show cause why the order of the Appellate authority should not be revised, and tax under the Act should not be levied. The petitioner has, thereafter, invoked the jurisdiction of this Court by way of the present writ petition contending that since the Act in its entirety was struck down by a Division Bench of this Court in Sree Rayalaseema Alkalies & Allied Chemicals Limited, Hyderabad v. State of Andhra Pradesh[1], the show cause notice should not be proceeded with. This court, by interim order dated 28.4.2008, directed the respondents to release the withheld amount of Rs.13,29,788/- to the petitioner on condition that the petitioner furnishes bank guarantee for the said amount which was to be in force till the disposal of the writ petition. Sri E.Manohar, Learned Senior Counsel appearing on behalf of the petitioner, would submit that, pursuant to the said interim order, a bank guarantee was furnished and the amount of Rs.13,29,788/- was released in the petitioner’s favour. Learned Senior Counsel would submit that, since the Act has been struck down and the show cause notice impugned in this writ petition is without jurisdiction, the respondents should be directed to return the bank guarantee furnished by the petitioner herein. As the Act, in its entirety, has been struck down by a Division Bench of this Court in Sree Rayalaseema Alkalies & Allied Chemicals Limited1 the very show cause notice, impugned in this writ petition, is clearly without jurisdiction, as no tax can be levied under an Act which no longer exists. The impugned show cause notice is, accordingly, quashed. Since the petitioner had furnished a bank guarantee pursuant to the interim order of this Court, the respondents may release the bank guarantee. The Writ Petition is, accordingly, allowed. No costs. _____________ V.V.S.RAO, J ___________________________ RAMESH RANGANATHAN, J 09.06.2011 ASP [1] 46 APSTJ 1