IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE SIXTH DAY OF AUGUST TWO THOUSAND AND EIGHT PRESENT THE HON'BLE SMT JUSTICE T.MEENA KUMARI & THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 16480 of 2008 Between: M/s. Sree Lakshmi Venkateswara Seeds, Door No.12-107/2, K.G.Road Nandikotkur, Kurnool District, A.P. a firm, rep. by its Managing Partner Sri D.Kiran Kumar. ..... PETITIONER AND Assistant Commissioner (C.T.) (INT.)., Large Tax Payers Unit, behind Central Plaza, near Ayyappa Swamy Temple, Kurnool - 518 002. .....RESPONDENT 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 direction more particularly in the nature of Mandamus declaring the action of the Respondent in levying tax on the turnover relating to seeds for sowing purpose sold to Andhra Pradesh State Seeds Development Corporation as contrary to the Amended Entry 44 of the First Schedule to the A.P. Value Added Tax Act, 2005, which was amended with retrospective eﬀect from 1-4-2005, and Memo No.39556/CT.II(1)/2007-2, dated 22-8-2007, and consequently set aside the impugned Order of "Assessment of Value Added Tax" in Form VAT 305, dated 11.4.2008 in TIN no. 28280241036, for the Tax Period 1.4.2005 to 31.7.2006 and pass such other order or orders. Counsel for the Petitioner:MR.G.NARENDRA CHETTY Counsel for the Respondents .: SRI K. RAJI REDDY, SPECIAL STANDING COUNSEL FOR COMMERCIAL TAX The Court made the following : HON'BLE SMT. JUSTICE T.MEENA KUMARI & HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 16480 of 2008 ORDER: ( Per the Honourable Smt.Justice T.Meenakumari) The present writ petition is ﬁled by the petitioner seeking to declare the action of the Respondent in levying tax on the turnover relating to seeds for sowing purpose sold to Andhra Pradesh State Seeds Development Corporation, as contrary to the Amended Entry 44 of the First Schedule to the A.P. Value Added Tax Act, 2005, which was amended with retrospective eﬀect from 1-4-2005, and Memo No.39556/CT.II(1)/2007-2, dated 22-8-2007, and consequently to set aside the impugned Order of "Assessment of Value Added Tax" dated 11.4.2008 in TIN no. 28280241036, for the Tax Period from 1.4.2005 to 31.7.2006. The main grievance of the petitioner is that the seeds for sowing and gardening purposes are exempted from payment of tax and that the seeds or grain corresponding to the seed sold to the nodal agencies are exempted from tax in view of G.O.Ms.No.818, Revenue (C.T.II), Dated 30.6.2008, in which Entry 44 of the First Schedule was amended or enlarged. Though the G.O. is after passing the order impugned, the memo dated 22.8.2007 issued by the Government to the same eﬀect was available as on the date of the order impugned. Therefore, the respondent is not justified in passing the order impugned. Heard the learned Counsel for the petitioner and the learned Standing Counsel for Commercial Tax and perused the material available on record. The learned Counsel for the petitioner contended that the Government issued G.O.Ms.No.818, dated 30.6.2008 by amending and enlarging Entry 44 of the First Schedule, w.e.f. 1.4.2005,with retrospective eﬀect, under which, the seed or grain corresponding to the seed sold to the nodal agencies is exempted from tax and therefore, the respondent is not justified in passing the order impugned. On the other hand, the learned Special Standing Counsel ﬁled counter-aﬃdavit contending that the Government issued the G.O Ms.No.818, Revenue (CT-II) Department, dated 30.6.2008 including the seed and grain procured/purchased by the seed companies in Entry 44 of the First Schedule and this G.O. was given with retrospective eﬀect from 1.4.2005 and in the light of the above G.O. no purchase tax would be enforced in pursuance of the assessment order. However, it is also contended that the said G.O. was not available to the assessing oﬃcer at the time of passing the order impugned and the petitioner has not filed any books of accounts. In view of the G.O.Ms.No.818 and in view of the submissions of the learned Standing Counsel and in the facts and circumstances of the case, We feel that it is a ﬁt case wherein the matter can be remanded for fresh consideration, in accordance with G.O.Ms.No.818. Accordingly, the order impugned herein is set aside and the matter is remanded to the respondent for fresh consideration and for passing appropriate orders, in accordance with G.O.Ms.No.818, Revenue (CT.II), dated 30.6.2008. However, it is needless to observe that the petitioner shall produce the relevant books of accounts at the time of hearing before the authorities. Subject to the above direction, the writ petition is disposed of. No order as to costs. _______________________ Justice T. Meenakumari ____________________________ Justice Ramesh Ranganathan Dated: 06.08.2008 Nn/gurc. HON'BLE SMT. JUSTICE T.MEENA KUMARI & HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 16480 of 2008 (ORDER of the Division Bench delivered by the Honourable Smt.Justice T.Meenakumari) 6T H August, 2008