THE HONOURABLE SRI JUSTICE GODA RAGHURAM AND THE HONOURABLE SRI JUSTICE SANJAY KUMAR W.P.26928 OF 2009 14-12-2009 BETWEEN; M/S.Sarda Agro Oil Limited, rep. By its Mg. Director, Mr.Jagadish Sarda ...Petitioner vs. The Commercial Tax Officer, Saroorngar Division, Hyderabad ...Respondent THE HONOURABLE SRI JUSTICE GODA RAGHURAM AND THE HONOURABLE SRI JUSTICE SANJAY KUMAR W.P.26928 OF 2009 ORAL ORDER: Heard Sri S.R.Ashok, the learned Senior Counsel appearing for th petitioner Sri S.Dwarakanath and Sri P.Balaji Varma, the learned Specia Standing Counsel for Commercial Taxes for the respondent. The order of assessment dated 30-10-2009 passed by the responden for the tax period 2006-07 is assailed. The petitioner is a Company engaged in the manufacture and sale o refined oils by extraction from crude oil and a registered dealer on the roll of the 1st respondent under the A.P.VAT Act, 2005. The Vigilance wing o the Commercial Taxes Department visited the factory premises of th petitioner on 24-10-2008 and verified the books of accounts. The petitione filed its return claiming that local inputs (purchases from within the State have gone into the product which was sold within the State and similarl procurements from the outside the State have gone into the product sol as inter-State sales and on this basis claimed input tax credit in its entiret qua Rule 20(6) of the A.P.VAT Rules. The respondent rejected this claim and passed the impugned order of assessment declining to accept th plea of the petitioner to look into its books of accounts in support of it claim for application of the provisions of the Rule 20(6) of the Rules b holding that as the petitioner was purchasing raw material from outside th State and within the State as well and the product manufactured out o such raw material being the same and the process taking place in on factory there exists no possibility to physically differentiate as to whethe the end product is manufactured from raw material purchased from outsid the State or within the State. Sri S.R.Ashok, the learned Senior Counsel contends that such a arbitrary infererence ought not to have been drawn by the respondent eve without looking into its books of accounts. Reliance is placed for the relie claimed herein on the judgment of this Court dated 06-11-2009 i W.P.No.23708 of 2009 and batch, wherein this Court held that it is onl after a detailed inquiry and physical verification of the records, that th Revenue may come to the conclusion that stocks of raw material were no maintained separately nor were processed separately to obtain th finished products. That was a case involving two units of the petitione therein. Though in the case on hand, the product is processed in a singl unit, it is a case of the petitioner that it is possible from its books o accounts to be satisfied whether the end product is manufactured from goods purchased within the State and those from outside the State. In an event, the respondent is required before rejecting the claim of th petitioner, to verify the books of accounts to satisfy itself as to whethe these records enable a rational inference as to the claim being eligible t acceptance under the provisions of Rule 20(6) of the Rules. On the foresaid analysis, the order of assessment dated 30.10.200 passed by the respondent for the tax period 2006-07 is set aside and th matter remanded to the respondent for an assessment de novo after dul verifying the books of accounts of the petitioner. The writ petition is accordingly disposed of at the stage of admission No order as to costs. ______________ GODA RAGHURAM,J ______________ SANJAY KUMAR, J 14TH DECEMBER 2009. TSNR