THE HONOURABLE SRI JUSTICE GODA RAGHURAM AND THE HONOURABLE SRI JUSTICE B.N.RAO NALLA WRIT PETITION No. 25619 of 2011 Dated: 14-09-2011 Between M/s Vhishal Enterprises, rep. by its Manager, Sri Sanjay S.Mittal …Petitioner And The Commercial Tax Officer, Vengalarao Nagar Circle, Abids, Hydeerabad …Respondents Oral Order: (Per Hon’ble Sri Justice Goda Raghuram) Heard the learned counsel for the petitioner Sri Ramesh Babu and the learned Special Government Pleader for Commercial Taxes Sri Balaji Varma. The petitioner firm is a consignment agent and distributor trading in Drugs and Medicines, medical equipments and is registered on the rolls of the respondent under the AP VAT Act, 2005 and under the CST Act, 1956. For the assessment year 2007-08, under the CST Act a show- cause notice was issued by the respondent on 21-8-2010 proposing to bring within liability to tax the stock transfers/consignment sales of the turnover specified therein, on the ground that despite the assessees claim of exempted turnovers on the basis of stock transfer transaction, the relevant documentary evidence, such as declaration in Form F were not furnished, under Section 6 A (1) of the CST Act read with Rule 12 (5); proposing disallowance of exemption in the absence of Declarations in Form F furnished; and proposing to treat the same as inter-state sale of drugs and medicines @ 4% under Section 8(2)(b) of the CST Act. However, by the impugned assessment order dated 09-03-2011 the respondent applied and subjected the turnover to tax at the rate of 12.5% treating the same as inter-state Sales of Surgical Goods/ Automobiles/ Abrasives/ Homecare etc. The levy of tax on this classification was not put to the petitioner in the show-cause notice dated 21-8-2010. The learned Special Government Pleader for Commercial Taxes has fairly conceded the position that since the assessment is on a basis not informed to the petitioner in the show-cause notice, the order cannot be sustained. In the facts and circumstances, the impugned assessment order dated 9-3-2011 passed by the 1st respondent under the CST Act, 1956 for the assessment year 2007-08 is quashed. It is however open to the respondent to pass a fresh order of assessment after issuing a notice, following due process of law. The writ petition is allowed. There shall however be no order as to costs. ______________________ GODA RAGHURAM, J 14th September, 2011 ______________________ B.N.RAO NALLA, J GRR