IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE EIGHTEENTH DAY OF MARCH TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE D.S.R.VARMA and THE HON'BLE MS JUSTICE P.S.NARAYANA WRIT PETITION No.5660 of 2008 Between: M/s.Sponge Iron India Ltd (Govt Of India Undertaking) Palvoncha 507 154 Khammam District, rep.by its Deputy Manager-Accounts Sri A.Jilani ..... PETITIONER AND 1 Assistant Commissioner(CT) (LTU), Warangal Division, Warangal. 2 Appellate Deputy Commissioner(CT), Warangal Division, Warangal. .....RESPONDENT/S 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 setting aside the appeal rejection order dated 17-09-2007 in Appeal No.143/07-08 passed by the Second respondent for the assessment year 2002-03 (APGST) Directing the Second respondent to admit the appeal and dispose of the same on merit. Counsel for the Petitioner : MR. S.KRISHNA MURTHY Counsel for the Respondents : G.P. FOR COMMERCIAL TAX The Court made the following : THE HON'BLE MR JUSTICE D.S.R.VARMA and THE HON'BLE MS JUSTICE P.S.NARAYANA WRIT PETITION No.5660 of 2008 ORAL ORDER: (per the Hon’ble Sri Justice P.S.Narayana) When the matter came up for admission on 17-03-2008, the learned Government Pleader for Commercial Tax had taken notices on behalf of the respondents and sought time to get instructions. Thus, the matter is coming up today under the caption “For orders”. 2. This writ petition is filed for Writ of Mandamus setting aside the appeal rejection order, dated 17-09-2007 in Appeal No.I.No.143/07-08 passed by the Second respondent for the assessment year 2002-03 (APGST) directing the second respondent to admit the appeal and dispose of the same on merits or pass such other suitable orders. 3. The petitioner is a Government of India and Government of Andhra Pradesh undertaking and is a manufacturer of sponge iron, with its factory located at Palvoncha, Khammam District, and registered office situated at Khanej Bhavan, Masabtank, Hyderabad, and is an assessee on the rolls of the first respondent. 4. It is averred that for the assessment year 2002-03, the assessment of the petitioner under the APGST Act, has been completed by the first respondent by his proceedings, dated 25- 03-2006. Aggrieved by the said order, the petitioner filed an appeal before the second respondent on 01-09-2007. The second respondent by proceedings, dated 17-09-2007, in Appeal No.I.No.143/07-08, rejected the appeal on the ground that the petitioner had not filed proof of payment of admitted tax as well as 12.5% of the disputed tax as per the provisions of Section 19(1) of the APGST Act. 5. It is also averred that it is a Government of India and Government of Andhra Pradesh undertaking and it had to seek many approvals from the various authorities by circulating the files to the hierarchy of officials in the organisation. It is for this reason, the petitioner could not pay the said amounts along with the filing of the appeal. 6. Further, it is averred that the first and second provisos to Section 19(1) of the APGST Act provides for filing of an appeal on condition that the petitioner deposits the admitted tax as well as 12.5% of the disputed tax for admission of appeal. The said section reads as under:- “Section 19(1) Any dealer objecting to any order passed or proceeding recorded by any authority under the provisions of this Act 1 (other than an order passed or proceeding recorded by 2(an Additional Commissioner, Joint Commissioner), Deputy Commissioner under 3(sub-section (4-C) of Section 14) may within thirty days from the date on which the order or proceeding was served on him, appeal to such authority as may be prescribed: Provided that the appellate authority may within a further period of thirty days admit the appeal preferred after a period of thirty days if he is satisfied that the dealer had sufficient cause for not preferring the appeal within that period. Provided further that an appeal so preferred shall not be admitted by the appellate authority concerned unless the dealer produces proof of payment of tax admitted to be due, or of such instalments as have been granted, for the relevant assessment year, in respect of which the appeal is preferred.” 7. It is also stated that the petitioner filed the above appeal on 01-09-2007, since the time limit for filing of appeal was getting barred by limitation. However, the requirements contemplated under Section 19(1) of the APGST Act could not be complied while filing the appeal. The second respondent rejected the appeal on the ground that the admitted tax of Rs.96,257/- as well as a sum of Rs.1,54,114/- being 12.5% of the disputed tax of Rs.12,32,909/- has not been complied with for admission of appeal and as such rejected the appeal. 8. It is also stated that the admitted tax of Rs.96,257/- as well as a sum of Rs.1,54,114/- being the 12.5% of the disputed tax of Rs.12,32,909/- have been duly paid by it on 18-12-2007 and the copies of the same also had been enclosed. It is stated that thus, the conditions to be complied had been complied with. However, since the second respondent had already rejected the appeal, the petitioner is left with no other option except to approach this Court under Article 226 of the Constitution of India. 9. It is no doubt true that there is a lapse on the part of the petitioner, but the same had been duly rectified. 10. In the light of the above facts and circumstances, the order of rejection, dated 17-09-2007, of the appeal made by the second respondent is hereby set aside and let the second respondent admit the appeal and decide the matter in accordance with law. 11. Accordingly, the writ petition is allowed to the extent indicated above, at the stage of admission. There shall be no order as to costs. _______________________ JUSTICE D.S.R.VARMA ________________________ JUSTICE P.S.NARAYANA 18-03-2008 Msr ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1 Assistant Commissioner(CT) (LTU), Warangal Division, Warangal. 2 Appellate Deputy Commissioner(CT), Warangal Division, Warangal. 3. 2 C.Cs. to the Government Pleader for Commercial Tax, High Court Buildings, Hyderabad. (OUT). 4. 2 C.D. copies THE HON'BLE MR JUSTICE D.S.R.VARMA and THE HON'BLE MS JUSTICE P.S.NARAYANA WRIT PETITION No.5660 of 2008 18-03-2008 (Msr)