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 MRS JUSTICE T.MEENA KUMARI and THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 16445 of 2008 Between: M/s. V Care Seed Services, D.No.76-1174-P-103, Krishna Reddy Nagar, Near Ballary Chowrastha, Kurnool, a firm, rep. by its Managing Partner, D. Koti Swamy. ..... PETITIONER AND Assistant Commissioner (C.T.) (INT.), Large Tax Payers Unit, behind Central Plaza, near Ayyappa Swamy Temple, Kurnool-518002. .....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 writ, order or direction more particularly one 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 01.04.2005, and Memo No.39556/CT.II(1)/2007-2, dated 22.08.2007, and consequently set aside the impugned Order of "Assessment of Value Added Tax" in Form VAT 305, dated 11.04.2008 in TIN No.28089463932, for the Tax Period 01.06.2006 to 30.06.2007 and pass such other order or orders. Counsel for the Petitioner: MR.G.NARENDRA CHETTY Counsel for the Respondent: 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 : 16445 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. 28089463932, for the Tax Period from 1.6.2006 to 30.6.2007. 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 : 16445 of 2008 (ORDER of the Division Bench delivered by the Honourable Smt.Justice T.Meenakumari) 6th August, 2008