IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTY NINETH DAY OF APRIL TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE B.PRAKASH RAO and THE HON'BLE MR JUSTICE C.Y.SOMAYAJULU WRIT PETITION Nos.18293, 18300, 25476 of 2005, 11741,19734 of 2006, 6830, 11303, 13539, 13890, 15026, 17381 and 18221 of 2007 WRIT PETITION NO : 18293 of 2005 Between: M/s Vijaya Transformers Guntur rep by its proprietor M.Venkateshwar Rao. ..... PETITIONER AND 1 The Commercial Tax Officer, Brodipet, Guntur District. 2 The Prl. Secretary to the Revenue Government of A.P.Secretariat, Hyderabad. ...RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an appropriate writ or direction, more particularly one in the nature of writ of mandamus declaring the A.P.Tax on entry on Goods into Local Areas Act 2001, as unconstitutional, illegal and violative of Article 301 R/w Article 304 (b) of the Constitution of India, besides being unjustified in the facts and circumstances of the case and consequently, set a side the orders dt.9.2.2005 passed by the 1st respondent for the assessment years 2003-04 and 2004-05 levying entry tax on the aluminum wire and transformer oil purchased by the petitioner from other state. Counsel for the Petitioner:MR.S.DWARAKANATH Counsel for Respondent No.1: SPL.S.C. FOR COMMERCIAL TAXES Counsel for Respondent No.2: GP FOR REVENUE. WRIT PETITION NO : 18300 of 2005 Between: M/s. S.V.R. Electricals (P) Ltd. Autonagar Guntur Rep by its Managing Director,M. Venkateshwar Rao ..... PETITIONER AND 1 The Commercial Tax Officer, Kothapet, Guntur District. 2 The Principal Secretary to the Revenue, Govt. of A.P. Secretariat, Hyderabad. ...RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an appropriate writ or direction, more particularly one in the nature of Writ of Mandamus declaring The A.P. Tax on Entry on Goods into local Areas Act,2001, as unconstitutional, illegal and violative of Article 301 R/W Article 304(B) of the Constitution of India, besides being unjustified in the facts and circumstances of the case and consequently, seta-side the order dt. 21-2-2005 passed by the 1st respondent for the assessment year 2003-04 levying entry tax on the aluminum wire and transformer oil purchased by the petitioner from other state. Counsel for the Petitioner:MR.S.DWARAKANATH Counsel for Respondent No.1: SPL.S.C. FOR COMMERCIAL TAXES Counsel for Respondent No.2: GP FOR REVENUE. WRIT PETITION NO : 25476 of 2005 Between: M/s.Vijaya Borewells, represented by its Proprietor K.Vykunta Rao, s/o Sri Vasudeva Rao, R/o Vijayanagaram. ..... PETITIONER AND 1 Government of Andhra Pradesh, represented by its Principal Secretary, Revenue Department, Secretariat Buildings, Hyderabad. 2 The Commissioner of Commercial Taxes, Andhra Pradesh, Nampally, Hyderabad. 3 The Special Assistant Commercial Tax Officer, Integrated Check Post, Bheemunipatnam, Tada Mandal, Nellore District. ....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an appropriate writ, or direction, more particularly one in the nature of a writ, of mandamus declaring the A.P.Tax on entry of Goods into Local Areas Act, 2001, as unconstitutional, illegal, and violative of Article 301 read with Article 304(b) of the Constitution of India, besides being unjustified in the facts and circumstances of the case and consequently set aside the order dt.3-3-2005 passed by the 3rd respondent in Case No.2/2004-04 levying tax on the diesel driven Air Compressor mounted on Rigs purchased by the petitioner from other state. Counsel for the Petitioner:MR.DANTU.SRINIVAS Counsel for Respondent No.1: GP FOR REVENUE. Counsel for Respondent Nos.2 &3: SPL.S.C. FOR COMMERCIAL TAXES WRIT PETITION NO : 11741 of 2006 Between: M/s.The India Cements Limited, "White House" Block-III Kundanbagh, Begumpet, Hyderabad-500016 ..... PETITIONER AND 1 State of Andhra Pradesh, rep.by its Secretary, Revenue Secretariat, Buildings, Hyderabad 2 The Assistant Commissioner (CT) LTU,Begumpet divison Ameerpet, Hyderabad .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a writ of mandamus or any other appropriate writ or order or direction declaring the Andhra Pradesh Tax on Entry of Goods into Local Areas Act,2001 as violative of Part-XIII of Constitution of India in particular Articles 301 & 304 of the constitution of India and strike down the Act and direct the 2nd respondent from levying or collection the tax under the impugned Act or in the alternative hold that the HDPE sacks purchased by the petitioner for the period 22.9.2002 till 31.3.2005 are not liable to entry tax as they are not notified in G.O.552 dated 12.9.2002 and also hold that the HDPE sacks purchased by the petitioner being subject matter of resale along with cement no entry tax can be levied in terms of section 3(2) of the Act. Counsel for the Petitioner:MR.S.DWARAKANATH Counsel for Respondent No.1: GP FOR REVENUE. Counsel for Respondent No.2 : SPL.S.C. FOR COMMERCIAL TAXES WRIT PETITION NO : 19734 of 2006 Between: M/s.Vemagiri Power Generation Ltd., Vemagiri, Kadiyam, East Godavari District, rep.by its General Manager (Indirect Taxation), Mr.N.V.Madhu Murthy ..... PETITIONER AND 1 State of AP., rep.by its Principal Secretary to Revenue Govt of Andhra Pradesh, Secretariat Buildings, Hyderabad 2 The Commissioner of Commercial taxes, Govt of Andhra Pradesh, Hyderabad 3 The Commercial Tax Officer, Alcot Gardens circle Rajahmundry, Andhra Pradesh 4 M/s.Larsen & Turbo Ltd., Summit Complex, 2&3 floors 5-10-188/2, Hill Fort Road, Hyderabad-4 ...RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an appropriate writ order or a direction particularly one in the nature of writ of mandamus declaring the AP Tax on Entry on Goods into Local Areas Act,2001 as unconstitutional illegal, and violative of Article 301 R/w Article 304(b) of the Constitution of India, besides being unjustified in the facts and circumstances of the case, consequently setting aside the order dated 23.8.2006( served on the petitioner on 26.8.20060 passed by the 3rd respondent in GI.No.4702/2004-05 levying Entry Tax on the Transformers, electrical wire, Aluminum products etc purchased and supplied by the petitioner from other state. Counsel for the Petitioner:MR.A.K.JAISWAL Counsel for Respondent No.1: GP FOR REVENUE. Counsel for Respondent No.2 &3 : SPL.S.C. FOR COMMERCIAL TAXES Counsel for Respondent NO.4: --- WRIT PETITION NO : 6830 of 2007 Between: Aradhana Foods and Juices (P) Ltd., 4th Floor, Saboo Towers, R.B.Road, Somajiguda, Hyderabad, represented by its General Manager (Finance) Vimal Agarwal, s/o Sri Virendra Pal Agarwal. ..... PETITIONER AND 1 State of Andhra Pradesh represented by the Principal Secretary to the Revenue, Government of Andhra Pradesh, Secretariat, Hyderabad. 2 The Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad. 3 Assistant Commissioner (CT)-III, Mahaboobnagar Circle, Mahaboobnagar. 4 The Commercial Tax Officer, Somajiguda Circle, Hyderabad. ...RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an appropriate writ or direction more particularly one in the nature of writ of mandamus declaring that Sections 3 and 4 of the Andhra Pradesh Tax on Entry of Goods into the Local Area Act, 2001 read with the Notifications issued there under are violative of Article 301 r/w Article 304 (a) & (b) and Article 14 of the Constitution of India and pass such further orders or other orders as this Hon'ble Court may deem fit in the circumstances of the case and consequently be pleased to set aside the Notice dated 23-03-07 issued by the 3rd respondent in Form VAT 610 detaining the consignment of chillers and spares and pass such further orders or other orders as this Hon'ble Court may deem fit in the circumstances of the case. Counsel for the Petitioner:MR.B.SRINIVAS Counsel for Respondent No.1: GP FOR REVENUE. Counsel for Respondent No.2 to 4 : SPL.S.C. FOR COMMERCIAL TAXES WRIT PETITION NO : 11303 of 2007 Between: M/s. Sinmgareni Collieries Company Ltd., P.O. Kothagudem Collieries, Kothagudem, Khammam District, Rep. by its Dy. Finance Manager-Taxation, Sri Hari Venkata Ramana. ..... PETITIONER AND 1 Assistant Commissioner (CT) (LTU) Warangal. 2 State of A.P., Rep. by the Prl. Secretary, Revenue Department, Secretariat, Hyderabad. ....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a writ, or Mandamus or any other appropriate writ, direction or order under Article 226 of the Constitution of India declaring that section 3 of the A.P. Tax on Entry of Hoods into Local Areas Act 1999, as un-Constitutional and beyond legislative competence of the state and ultra vires Article 246(1) of the constitution of India in so far as purporting to impose a levy on goods imported from outside the state being violative of Serial Nos. 41,83 and 92-A of List 1 to the Seventh Schedule to the Constitution of India besides violative of Articles 301 and 304(a) not being saved by Article 304(b) and liable to be declared void and unenforceable and consequently set aside the impugned assessment order passed by the first respondent dt.29-3-2007 passed for the assessment year 2003-04 in levying entry tax of Rs. 73,47,528/- on the notified goods purchased by the petitioner from outside the state. Counsel for the Petitioner:MR.S.KRISHNA MURTHY Counsel for Respondent No.1: SPL.S.C. FOR COMMERCIAL TAXES Counsel for Respondent No.2: GP FOR REVENUE. WRIT PETITION NO : 13539 of 2007 Between: M/s. Vaibhav Empair Private Limited, A-1, Pavan Palace, Opp: TSR Complex, Dwarakanagar, Visakhapatnam,rep by its Managing Director, sri G. Manoj Kumar. ..... PETITIONER AND 1 The State of Andhra Pradesh, rep by its Secretary to Government of Legisltive Affairs & Justice (i/c), Law Department, Secretarait Building Hyderabad. 2 The State of Andhra Pradesh rep by its Principal Secretary to Government Revenue Department, Secretariat Buildings, Hyderabad 3 The Deputy Commercial Tax Officer, VAT Management Unit (II), Visakhapatnam. ...RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a Writ of Mandamus or any other appropriate Writ or order or direction declaring the Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 as violative of Part-XIII of Constitution of India, in particular, Articles 301 & 304 and also Article 19 of the Constitution of India and strike down the Act and also interdict the Respondents from levying or collecting the tax under the impugned Act onthe notified goods purchased by the petitioner from outside the state of Andhra Pradesh. Counsel for the Petitioner:MR.A.SARVESWAR RAO Counsel for Respondent No.1: GP FOR LAW & LEGISLATIVE AFFAIRS. Counsel for Respondent No.2: GP FOR REVENUE Counsel for Respondent No.3: SPL SC FOR COMMERCIAL TAXES. WRIT PETITION NO : 13890 of 2007 Between: M/s. Pujitha Spinning Mills (P) Ld., Thimmapuram, Guntur District, rep. by its Managing Director, Mr.B.Sambasiva Rao. ..... PETITIONER AND 1 The Commercial Tax Officer, Chilakaluripet Circle, Guntur District.s 2 The Commissioner of Commercial Taxes, A.P., 1st Floor, Commercial Taxes Bldgs., M.J.Road,Nampally, Hyd. 3 The Prl., Secretary to the Revenue, Govt of A.P. Secretariat, Hyd. ....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an appropriate writ or direction more particularly one in the nature of writ of mandamus declaring the A.P. Tax on Entry of Goods into Local Areas Act, 2001 (Act No.39 of 2001), as unconstitutional, illegal and violative of Article 301 read with Article 304 (a) & (b) of the Constitution of India, besides being unjustified in the facts and circumstances of the case and consequently set aside the assessment order dt.23.12.2006 passed by the 1st respondent in Rc.No.84/2006-A1, levying entry tax on the humidification plant purchased by the petitioner from other State and pass. Counsel for the Petitioner:MR.SHAIK JEELANI BASHA Counsel for Respondents 1 & 2: SPL. SC FOR COMMERCIAL TAXES Counsel for Respondent NO.3: GP FOR REVENUE. WRIT PETITION NO : 15026 of 2007 Between: M/s.Maa Maha Maya Industries Limited, R.G.Peta L. Kotamandal, Vizianagaram District,Rep. by its Vice President (Finance) Mr. Sandeep Tiwari. ..... PETITIONER AND 1 State of A.P., Rep. bys its Secretary, Revenue Secretariat Building, Hyderabad. 2 The Entry Tax Officer & Commercial Tax Officer, M.G. Road (East) Vizianagaram. ....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to to issue a writ of Mandamus or any other appropriate writ or order or direction declaring the Andhra Pradesh Tax on Entry of Goods into Local Areas Act 2001 as violative of Part -XIII of Constitution of India in particular, Articles 301 & 304 of the Constitution of India and strike down the Act and consequently set aside the assessment order passed by the 2nd Respondent dt. 6-5-2007 direct the 2nd Respondent to refund the taxes paid by the petitioner under the impugned Act and also interdict the 2nd Respondent from levying or collecting the tax under the impugned Act in future or in the alternative hold that the electrical goods and generators purchased by the petitioner during the assessment year 2005-06 no entry tax can be levied in terms of section 3(2) of the Act since there is no consumption of the goods but used for as inputs and direct refund of the entry tax of Rs. 84,07,494/- paid by the petitioner. Counsel for the Petitioner:MR.S.DWARAKANATH Counsel for Respondent No.1: GP FOR REVENUE. Counsel for Respondent No.2: SPL. SC FOR COMMERCIAL TAXES WRIT PETITION NO : 17381 of 2007 Between: M/s.Ferro Scrap Nigam Limited, A Government of India Undertaking Site Office at Visakhapatnam Steel Plant, Visakhapatnam, rep.by its Deputy Manager (Law) Mr.V.V.Satyanarayana ..... PETITIONER AND 1 State of Andhra Pradesh, rep.by its Secretary to Government, Legislative Affairs & Justice (i/c), Law Department, secretariat Buildings, Hyderabad 2 State of Andhra Pradesh, rep.by its Principal Secretary to Government, Revenue Department, Secretariat Buildings, Hyderabad 3 The Assistant Commercial Tax officer, Integrated Check Post, Purushothampuram ....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a writ of mandamus or any other appropriate writ or order or direction declaring the Andhra Pradesh Tax on Entry of Goods into Local Areas Act,2001 as violative of Part-XIII of constitution of India in particular Articles 301 & 304 and also article 19 of the constitution of India and strike down the Act and consequently declare the action of the 3rd respondent in detaining the hydraulic excavator purchased by the petitioner from other state by his detention notice dated 7.8.2007 as illegal, arbitrary, and without authority of law and jurisdiction and also interdict the 3rd respondent from levying or collecting the tax under the impugned Act on the notified goods purchased by the petitioner from outside the State of Andhra Pradesh and pass Counsel for the Petitioner:MR.A.SARVESWAR RAO Counsel for Respondent No.1 : GP FOR LAW & LEGISLATIVE AFFAIRS. Counsel for Respondent No.2: GP FOR REVENUE Counsel for Respondent NO.1: SPL. SC FOR COMMERCIAL TAXES. WRIT PETITION NO : 18221 of 2007 Between: M/s. ICI India Limited, Balanagar, Hyderabad, Rep. by its Works Manager Sri Shrikant Choubey ..... PETITIONER AND 1 Assistant Commissioner (CT) (LTU) Hyderabad Rural Division, Hyderabad. 2 Assistant Commissioner (CT) (Idnt) Hyderabad Rural Division, Hyderabad. 3 Appellate Deputy Commissioner (CT) Hyderabad Rural Division, Hyderabad. 4 Additional Commissioner (CT) (Legal Andhra Pradesh, Hyderabad. 5 State of Andhra Pradesh, Rep. by the Principal Secretary, Revenue Department, Secretariat, Hyderabad. ...RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue a writ of Certiorari after calling for the recordes and quash the impugned revision order passed by the fourth respondent passed in Proceedings No. CCT's Ref.No.L.III (4)/177/2003-II dt.2-4-2007 for the assessment year 2002-03 in seeking to levy entry tax on the inter-state purchases of Mineral Turpentine Oil under the Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 and declare that Section 3 of the Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 and declare that Section 3 of the Andhra Pradesh Tax on Entry of Goods into Local Areas Act 2001 as un-constitutional and beyond legislative competence of the State, and Ultra Vires Articles 246(1) of the Constitution of India in so far as purporting to impose a levy on goods imported from outside the State being violative of Serial Nos. 41, 83 and 92-A of List I to the Seventh Schedule to the Constitution of India besides violative of Articles 301 and 304(a) not being saved by Article 304(b) and liable to be declared void and unenforceable. Counsel for the Petitioner:MR.S.KRISHNA MURTHY Counsel for Respondents 1 to 4: SPL SC FOR COMMERCIAL TAXES Counsel for Respondent No.5: GP FOR REVENUE. The Court made the following: COMMON ORDER (Per BPR,J) Heard both sides and at their request, all these matters are taken up together for disposal as common question is involved. These writ petitions are filed seeking a writ of mandamus to declare Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 (Act 39 of 2001), as unconstitutional, arbitrary and violative of Articles 301 read with 304 (a) and (b) of the Constitution of India. When the matter is taken up for hearing, it is submitted by the learned Counsel on either side that the subject matter of this writ petition is squarely covered by the judgment of this Court in SREE RAYALASEEMA ALKALIES & ALLIED CHEMICALS LIMITED, HYDERABAD v. STATE OF ANDHRA PRADESH, wherein the Division Bench of this Court has struck down the very provision. Following the said judgment, all the Writ Petitions are allowed. No costs. _________________ B. PRAKASH RAO, J _________________ C.Y.SOMAYAJULU, J Dated:29.04.2008. sj . REGISTRAR // TRUE COPY // SECTION OFFICER To 1 The Commercial Tax Officer, Brodipet, Guntur District. 2 The Prl. Secretary to the Revenue Government of A.P.Secretariat, Hyderabad. 3 The Special Assistant Commercial Tax Officer, Integrated Check Post, Bheemunipatnam, Tada Mandal, Nellore District. 4 The Commercial Tax Officer, Somajiguda Circle, Hyderabad. 5 The Entry Tax Officer & Commercial Tax Officer, M.G. Road (East) Vizianagaram. 6 The Assistant Commercial Tax officer, Integrated Check Post, Purushothampuram 7 Assistant Commissioner (CT) (LTU) Hyderabad Rural Division, Hyderabad. 8 Assistant Commissioner (CT) (Idnt) Hyderabad Rural Division, Hyderabad. 9 Appellate Deputy Commissioner (CT) Hyderabad Rural Division, Hyderabad. 10 Additional Commissioner (CT) (Legal Andhra Pradesh, Hyderabad. 11 State of Andhra Pradesh, Rep. by the Principal Secretary, Revenue Department, Secretariat, Hyderabad. 12 2CD copies