IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE EIGHTH DAY OF JULY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MRS JUSTICE T.MEENA KUMARI AND THE HON'BLE MR JUSTICE RAMESH RANGANATHAN WRIT PETITION NO : 13629 of 2008 Between: M/s Mahindra & Mahindra Ltd., Automotive Sector, Mahindra Nagar, Zaheerabad, Medak District, A.P., Rep by its Deputy General Manager(Accounts) Mr.A.Kameswara Rao. ..... PETITIONER AND 1 he Assistant Commissioner (CT), Begumpet Division, Hyderabad. 2 he Commissioner of Industries, Government of Andhra Pradesh, 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, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the 1st respondent in passing the impugned assessment order dated 27.5.2008 as amended by the orders dated 05.06.2008 treating the turnover of branch transfers as inter-State sales for the assessment year 2006-2008 under the CST Act as illegal, arbitrary, high handed, without authority of law and jurisdiction and contrary to the principles of natural justice and set aside the same and declare that the petitioner is entitled for exemption on the disputed turnover of Rs.411,47,35,914/- representing stock transfers in terms of Section 6A of the CST Act and pass Counsel for the Petitioner: MR.BHASKAR REDDY VEMIREDDY Counsel for the Respondent No.: GP FOR COMMERCIAL TAX The Court made the following : ORAL ORDER: (per THE HON’BLE MRS. JUSTICE T.MEENA KUMARI) Seeking a writ of mandamus declaring action of the first respondent in passing the order dated 27.05.2008 as amended by the order dated 05.06.2008 treating the turnover of the Branch Transfers as Inter-State sales for the assessment year 2006-2007 under the CST Act as illegal and arbitrary and consequently to set aside the same and declare that the petitioner is entitled to exemption on the disputed turnover of Rs.411, 47,35,914/- representing stock transfers in terms of Section 6-A of the CST Act, the petitioner filed this writ petition. The petitioner is a Public Limited Company incorporated under the Indian Companies Act and is engaged in the manufacture and sale of light commercial vehicles and three wheelers in its factory at Zaheerabad, Medak District, Andhra Pradesh. The petitioner is a registered dealer under the provisions of the APGST, CST and A.P. VAT Act and is an assessee on the rolls of the first respondent herein. The vehicles manufactured by the petitioner are sold in the State of Andhra Pradesh as well as other States. The petitioner has been filing the returns claiming exemption in respect of the Branch transfers and the Commercial Tax Department in the State of Andhra Pradesh has been accepting the claim of the petitioner in regard to the Branch Transfers. While so, the first respondent has issued pre-assessment show cause notice dated 20.10.2007, to which the petitioner filed objections dated 15.3.2008 and in further reply dated 30.4.2008 to the notice dated 11.4.2008. issued by the respondent, the petitioner sought deferment of the assessment proceedings till the disposal of WP No. 4393 of 2008, wherein conditional stay was ordered on payment of Rs.5.00 crores. But, however, the first respondent without deferring the assessment issued the impugned proceedings. It is argued by the learned counsel for the petitioner that the disputed sales are Branch Transfers and they are not inter-State sales and hence, the petitioner is entitled to claim exemption under Sec.6-A, but the same is disputed by the learned Government Pleader for Industries and Commerce and the learned Special Counsel for the first respondent, contending that no material is placed before the authorities to prove that they are Branch Transfers. Learned counsel for the petitioner further argued that the petitioner could not produce the material before the Assessing Authority at appropriate time and, therefore, sought for deferment of the assessment before the Assessing Authority, which was not acceded to. Therefore, he prayed that an opportunity may be afforded to the petitioner to file the relevant documents in relation to the impugned assessment order dated 27.5.2008 as amended by order dated 5.6.2008, so that the matter can be adjudicated in accordance with law. We see some force in the submission of learned counsel for the petitioner. Therefore, having regard to these facts, we are of the considered opinion that the petitioner can be afforded an opportunity to put forth his claim for exemption in relation to the Branch Transfers, in respect of only the impugned order dated 27.5.2008 as amended by order dated 5.6.2008, passed by the first respondent. Accordingly, an opportunity is afforded to the petitioner to put forth his claim for exemption in relation to the Branch Transfers, in respect of only the impugned order dated 27.5.2008 as amended by order dated 5.6.2008, passed by the first respondent, subject, however, to the condition of the petitioner depositing an amount of Rs.18.00 crores (Eighteen crores) before 30.09.2008, after deducting the amount paid, if any. However, a sum of Rs.5.00 crores shall be deposited immediately not later than 30.7.2008 and the balance amount shall be cleared before 30.9.2008. On such deposit, the first respondent is directed to dispose of the matter as expeditiously as possible not later than 30.10.2008, after affording an opportunity of hearing to the petitioner. With these directions, the writ petition is disposed of. No order as to costs. ____________________ Justice T.Meena Kumari _______________________ Justice Ramesh Ranganathan July 8, 2008 Copy in one week //BO// MAS ..... REGISTRAR // TRUE COPY // SECTION OFFICER To 1.2CCs to 2.2CD copies Form-NIC-OGS/WP{LS}