IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE FIRST DAY OF MAY 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 : 15781,17618,18262, 18456, 19272, 21438,22435, 22436, 23029, 26528 of 2007and 5359 of 2008 Between: M/s. Hotel Anmol Continental, 5-9-20/A, Opp: Secretariat, Saifabad, Hyderabad, rep. by its Proprietor Mr.Mohd Saleem. ..... PETITIONER AND 1 The 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 Building, Hyderabad. 3 The Commercial Tax Officer, Basheerbagh 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 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 set aside the impugned assessment order passed by the 3rd Respondent, dated 7.4.2007 for the assessment year 2004-05 under the Andhra Pradesh tax on Entry of Goods into Local Areas Act, 2001 and the notice dated 4.7.2007 issued to the Bank for recovery of disputed entry tax of Rs.4,35,000/- and further restrain 2nd 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. Counsel for the Petitioner:MR.S.DWARAKANATH Counsel for Respondents 1 & 2: GP FOR LAW & LEGISLATIVE AFFAIRS Counsel for Respondent No.3:SPL. SC FOR COMMERCIALTAXES. WRIT PETITION NO : 17618 of 2007 Between: M/s.Liquors India Limited, IDA Nacharam Hyderabad-500076, rep.by its Managing Director, MR.Bh.Ajeyakumar ..... 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 Deparrment, Secretariat Building Hyderabad 3 The Assistant Commissioner (CT),(Audit), Punjagutta Division,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 appropriaate 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 set aside the impugned provisional assessment order passed by the 3rd respondent dated 12.6.2007 for the assessment year 2006-07 and also interdict the Respondents 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. Counsel for the Petitioner:MR.S.DWARAKANATH Counsel for Respondents 1 & 2: GP FOR LAW & LEGISLATIVE AFFAIRS Counsel for Respondent No.3:SPL. SC FOR COMMERCIALTAXES. WRIT PETITION NO : 18262 of 2007 Between: Essar Telecom Infrastructure Private Limite,d having its Regd.office at Essar House ,11 K.K.Marg, Mahalaxmi Mumbai-400034, and its circle office at Plot No.37, Line No.13, Bakaram , Gandhi Nagar, Hyderabad-500080 rep.by its Authorised Signatory Anoop Khatry S/o.Rajesh Khatry, aged 30 years, R/o.Mumbai ..... PETITIONER AND 1 The Commercial Tax officer, Musheerabad Circle V Floor, Kushal Towers, Abids, Hyderabad-500001 2 The State of Andhra Pradesh, rep.by its Secretary Revenue Department, Government of Andhra Pradesh 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 Mandamus or any other appropriate writ direction or order under Article 226 of the Constitution of India declaring that sections 2(e),2(h),2(j),2(i) and section of 3 of the Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 as unconstitutional and violative of Articles, 301 and 304 and void as offending Article 14 and the recovery infringement of Article 265 of the Constitution of India and interdict the Respondent No.1 from proceeding further in pursuant to his proceedings in TIN.28175443570/2006-07/2007-08 dated 14.8.2007 and 23.8.2007. Counsel for the Petitioner:MR.S.CHAKRAPANI Counsel for Respondent NO.1: SPL. SC FOR COMMERCIALTAXES. Counsel for Respondent No.2: GP FOR REVENUE WRIT PETITION NO : 18456 of 2007 Between: M/s. CGGC SOMA JV, 14, Avenue-4, Banjara Hills, Hyderabad, rep. by its Manager, Sri Abdul Raheem. ..... PETITIONER AND 1 Commercial Tax Officer, Jubilee Hills Circle, Hyderabad. 2 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 or order or direction particularly one in the nature of Writ of Mandamus under Article 226 of the Constitution of India declaring 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 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 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 and restrain the first respondent not to collect entry tax on the inter- state purchases of HSD made by the petitioner from M/s. Indian Oil Corporation Limited, Manali amounting to Rs.2,09,37,637/- to a tax at 22.25% amount to Rs.46,58,624/- for the period July, 2007 & August, 2007. Counsel for the Petitioner:MR.S.KRISHNA MURTHY Counsel for Respondent NO.1: SPL. SC FOR COMMERCIALTAXES. Counsel for Respondent No.2: GP FOR REVENUE. WRIT PETITION NO : 19272 of 2007 Between: M/s. Charoen Pokhands Seeds (India) Private Ltd., 38/1, 62/5, Billanapalli Road, Meerajapuram, Krishna District, Nuzvid Road, Andhra Pradesh - 521 105. Rep by its Director, Mr. Vitoon Kittimongkolsuk ..... PETITIONER AND 1 Commercial Tax Officer, Gudiwada. 2 Assistant Commissioner (CT), VAT Management Unit-II, No. I Division, Vijayawada. 3 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 Mandamus or any other appropriate writ, direction or order under Article 226 of the Constitution of India declaring the at 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 virus 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 I of 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 quash the provisional assessment order passed by the second respondent by his proceedings dated 18-7-2007 for the assessmen4t year 2006-2007 under the AP Tax on Entry of Goods into Local Areas Act, 2001 in seeking to levy entry tax on the inter-State purchases of diesel generators amounting to Rs.30,32,343/- to a tax of Rs. 2,54,043/- respectively. Counsel for the Petitioner:MR.S.KRISHNA MURTHY Counsel for Respondents 1 & 2: SPL. SC FOR COMMERCIAL TAXES Counsel for Respondent No.3: GP FOR REVENUE. WRIT PETITION NO : 21438 of 2007 Between: M/s. Transmission Corporation of A.P.Limited Vidyut Soudha, Hyderabad, rep. by its Financial Adviser & Chief Controller of Accounts (A&E) Sri N.Ramachandra. ..... PETITIONER AND 1 Commercial Tax Officer, Khairtabad Circle, Hyderabad. 2 Commissioner of Commercial Taxes, A.P. 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 a issue a writ of Certiorari after calling for the records (i) quash the impugned assessment order dt. 3-9-2007 passed by the first respondent in Ref.No. 6/ACTO/INT/CTO/KB/2006-07/Entry Tax for the Assessment period from 1-7-2006 to 31-3-2007 under the A.P. Tax on Entry of Goods into Local Areas Act 2001; and (ii) 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 Virus 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 92A of List I of 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 declare that G.O.Ms.NMo. 470,. Revenue dt. 24-4-42006 in so far as it relates to the levy of the rate of tax on transformers covered by Item 4 of Notification -III of G.O.Ms.o. 405, Revenue dt. 31- 3-2006 as unconstitutional. Counsel for the Petitioner:MR.S.KRISHNA MURTHY Counsel for Respondents:SPL SC FOR COMMERCIAL TAXES WRIT PETITION NO : 22435 of 2007 Between: M/s. Central Power Distribution Company of A.P. Ltd., Red Hills, Seetharam Mansion, Opp: Singareni Bhavan, Hyderabad, rep. by its Chief General Manager (Expr) Sri M.Pandaraiah. ..... PETITIONER AND 1 Commercial Tax Officer, Khairatabad Circle, Hyderabad. 2 State of A.P. 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 Mandamus declaring 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 virus 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 I of 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 provisional Assessment Order passed by the first respondent dated 08.10.2007 in TIN No. 28580127730/2005-06/Entry Tax in seeking to levy entry tax of Rs.3,29,47,801/- for the assessment period from 01.12.2005 to 31.03.2006. Counsel for the Petitioner:MR.S.KRISHNA MURTHY Counsel for Respondent No.1: SPL. SC FOR COMMERCIAL TAXES Counsel for Respondent No.2: GP FOR REVENUE. WRIT PETITION NO : 22436 of 2007 Between: M/s.Central Power Distribution company of AP Ltd Red hills, Seetharam Mansion, Opp:Singareni bhavan Hyderabad, rep.by its Chief General Manager (Expr) Sri M.Pandaraiah ..... PETITIONER AND 1 The Commercial Tax officer, Khairatabad circle Hyderabad 2 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 to issue a writ of mandamus declaring that section 3 of the Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 as unconstitutional 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 I of 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 provisional assessment order passed by the first respondent dated 8.10.2007 in TIN.No.28580127730 /2006-07/Entry tax in seeking at levy entry tax of Rs.4,30,40,841/- for the assessment period from 1.4.2006 to 31.3.2007. Counsel for the Petitioner:MR.S.KRISHNA MURTHY Counsel for Respondent No.1 : SPL. SC FOR COMMERCIAL TAXES Counsel for Respondent No.2: GP FOR REVENUE. WRIT PETITION NO : 23029 of 2007 Between: M/s. Ashoka Builders, 8-2-120/112/P/7, 3rd Floor, Park View Estate, (opp.KBR Park), Road No.2, Banjarahills,Hyderabad 500034 Rep.by its Managing Partner, Mr.K.Laxma Reddy,S/o.Mr.K.Narayana Reddy ..... PETITIONER AND 1 The Commissioner of Commercial Taxes, Andhra Pradesh, Op.Gandhi Bhavan, Nampally,Hyd 2 The Principal Secretary to the Revenue, Government of A.P, Secretariat,Saifabad,Hyd 3 The Commercial Tax Officer, Basheerbagh 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 the A.P.Tax on Entry on Goods into Local Areas Act,2001, as unconstitutional, illegal and violative of Article 301, read with Article 304(b) of the constitution of India in the facts and circumstances of the case and consequently may be pleased set aside the order dt.07-04-2007 passed by the 3rd respondent. Counsel for the Petitioner:MR.J.V.RAO Counsel for Respondents 1 & 3: GP FOR REVENUE Counsel for Respondent No.2: GP FOR REVENUE. WRIT PETITION NO : 26528 of 2007 Between: M/s. Shivnath Rai Harnarain (India) Ltd., Regd. Office B-16, Bhagwandas Nagar, New Delhi - 110 026, Branch Office: Door No. 3-20-6, Ram Mohan Raja Nagar, Kakinada. Rep. by its Manager Mr.Ch.Srinivasa Rao. ..... PETITIONER AND 1 The State of Andhra Pradesh, rep. by its Secretary to Legislative Affairs & Justice, Law Department, Secretariat, Hyderabad. 2 Government of Andhra Pradesh, rep. by Secretary, Revenue Department, Secretariat Buildings, Hyderabad. 3 Commissioner of Commercial taxes, Government of A.P., Hyderabad. 4 The Assistant Commissioner of Commercial Taxes, Large Tax Payer's Unit & VAT Management, Unit - I, Kakinada. .....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 The 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 on the notified goods purchased by the Petitioner from outside the State of Andhra Pradesh and consequently set aside the impugned assessment order passed by the 4th respondent in proceedings in CF. No. 30/2005-2006 dt. 26.12.2005 . Counsel for the Petitioner:MR.BHASKAR REDDY VEMIREDDY Counsel for Respondent No. 1: GP FOR LAW & LEGISLATIVE AFFAIRS Counsel for Respondent No.2: GP FOR REVENUE. Counsel for Respondent No.3 & 4: SPL. SC FOR COMMERCIAL TAXES WRIT PETITION NO : 5359 of 2008 Between: M/s. Anad Metallics & Power Pvt. Ltd., Regd. Office at Chirag Ali Lane, Hyd. Mahaboobnagar Dist. rep. by its Disrector Mr. Pankaj Kumar Agarwal, S/o. Padam Chand Agarwal, R/o. Hyderabad. ..... PETITIONER AND 1 The Asst. Commissioner ( CT ), Central Audit Unit, O/o. Commissioner of Commercial Taxes, Nampally, Hyderabad. 2 Commercial Tax Officer, Jedcherla. 3 Principal Secretary to Govt. Revenue Department, Govt. of A.P., 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 a writ or order or direction particularly one in the nature of writ of Mandamus declaring the levy under A.P.tax on Entry of Goods into Local Areas Act, 2001 as violative of Part-XIII of Constitution of India, in particular, Articles 301 and 304 of the Constitution of India and strike down the Act read with the assessment order in G.I.No.28640171960/07-08 dated 02.01.2008. Counsel for the Petitioner:MR.TEJPRAKASH TOSHNIWAL Counsel for RespondentNos.1 &2:SPL. SC FOR COMMERCIAL TAXES. Counsel for the Respondent No.3: GP FOR COMMERCIAL TAX 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:01.05.2008. sj ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1 The Secretary to Government, Legislative Affairs & Justice (i/c) Law Department, State of Andhra Pradesh, rep. by its Secretariat Buildings, Hyderabad. 2 The Principal Secretary to Government, State of Andhra Pradesh, rep. by its Revenue Department, Secretariat Building, Hyderabad. 3 The Commercial Tax Officer, Basheerbagh Circle, Hyderabad. 4 T he Assistant Commissioner (CT),(Audit), Punjagutta Division,Hyderabad 5 The Assistant Commissioner of Commercial Taxes, Large Tax Payer's Unit & VAT Management, Unit - I, Kakinada. 6.2CCs to the Government Pleader for Revenue, High CourtBuildings, Hyderabad. (OUT) 7.2CD copies Form-NIC-OGS/WP{KURR}