THE HON’BLE SRI JUSTICE V.V.S.RAO AND THE HON’BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.24909 of 2002 June 06, 2011 Between: Sri Balaji Decordecator, represented by its Proprietor, K.Anasuyamma And another … Petitioners And The Commissioner, Department of Commercial Taxes, Hyderabad And others ... Respondents THE HON'BLE SRI JUSTICE V.V.S.RAO AND THE HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.24909 of 2002 ORDER: (Per Hon’ble Sri Justice V.V.S.Rao) The two petitioners are engaged in the business of purchasing groundnut pods outside the State, demarcate it and sell as a seed to the ryots. They are also registered dealers under the Andhra Pradesh General Sales Tax Act, 1957. They purchased groundnut from the States of Gujarat, Karnataka and Maharashtra. While they were transporting the groundnut to State of Andhra Pradesh, the officials of Commercial Tax department insisted for payment of 4% tax purporting to apply item-6 of Schedule-III to the APGST Act. The petitioners, therefore, filed the instant writ petition. They would contend that as the sale took place outside the State and being inter-State trade, it is not taxable under the APGST Act. This Court, while admitting the writ petition, passed interim orders directing the respondents not to collect tax from the petitioners being collected at check post until further orders. In view of Article 286 of the Constitution of India there cannot be any dispute that the State is not competent to levy tax on the exports or the sale that took place during the course of inter-State trade and commerce. Therefore, without going further deep into the matter, we dispose of the matter in terms of the interim order. We further make it clear that the petitioners shall be liable to pay tax/ taxes, if any, as per law. The writ petition stands disposed of accordingly. No costs. _______________ (V.V.S.RAO, J) _______________________________ (RAMESH RANGANATHAN, J) June 06, 2011 YS