IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE THIRD DAY OF JUNE TWO THOUSAND AND NINE PRESENT HON'BLE THE CHIEF JUSTICE SRI ANIL R. DAVE AND HON'BLE SRI JUSTICE RAMESH RANGANATHAN WRIT PETITION No.22024 of 2008 Between: M/s. Sri Anjaneya Modern Rice Mill, Kurnool, Plot No.19, Industrial Estate, Kalluru, Kurnool District, represented by its Managing Partner C.H. Pedda Venkateswarlu, S/o. C.H. Anjaiah. ...Petitioner And The Assistant Commissioner (CT)(INT), Large Tax Payers Unit, Behind Central Plaza, Near Ayyappa SwamyTemple, Kurnool. ...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 a writ order or direction more particularly one in the nature of the writ 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 1st Schedule to the A.P. Value Added Tax, 2005, which was amended with retrospective effect from 1-4-2005 and Memo No.39556/CT.II(1)/2007- 02, dated 22-8-2007 and consequently set aside the impugned order of “Assessment of Value Added Tax” in Form VAT 305, dated 19-04- 2008 in TIN No.28170160659 for the tax period 01-04-2005 to 31-03- 2007. Counsel for the petitioner : Sri K.V. Raghu Veer Counsel for the respondent : Sri K. Raji Reddy, Special Standing Counsel for Commercial Taxes. The Court made the following: ORAL ORDER: (Per Sri Anil R. Dave, C.J.) Looking to the facts of the case, the writ petition is taken up for final hearing along with WVMP.No.498 of 2009, which has been filed with a prayer that interim stay granted by this Court on 14th October, 2008 in WPMP.No.28675 of 2008 be vacated. Paragraph 7 of the counter affidavit filed by the respondent reads as under: “It is submitted that after passing the above assessment order, the Government has issued G.O.Ms.No.818, Revenue (CT-II) Department, dated 30.6.2008 including seed and grain procured/purchased by the seed companies in entry 44 of the 1st Schedule to the APVAT Act, 2005. It is submitted that all the goods mentioned in various entries of the 1st Schedule are totally exempt from payment of tax under Section 7 of the Act. This G.O. amending entries 1 and 44 in 1st Schedule was given retrospective effect from 1.4.2005. This G.O. was not available when the assessment order was passed.” The learned Special Standing Counsel for Commercial Taxes has fairly submitted that by virtue of G.O.Ms.No.818, Revenue (CT-II) Department, dated 30.6.2008, now, seeds and grains procured or purchased by the seed companies have been added in Entry 44 of the 1st Schedule to the A.P. Value Added Tax Act, 2005. The said entry has been given retrospective effect and it is to operate from 1st April, 2005. Looking to the above fact, it has been fairly submitted on behalf of the Revenue that the petitioner shall not have to pay any amount of value added tax as the seeds, on sale of which tax was levied, have been now included in Entry 44 of the 1st Schedule to the A.P. Value Added Tax Act. In the circumstances, the impugned assessment order dated 19th April, 2008 is quashed and set aside. In view of the fact that the assessment order is quashed and set aside, the interim order dated 14th October, 2008 granted by this Court in WPMP.No.28675 of 2008 also stands vacated. The petition stands disposed of as allowed with no order as to costs. ANIL R. DAVE, C.J. 3rd June, 2009 RAMESH RANGANATHAN, J. To 1. The Assistant Commissioner (CT)(INT), Large Tax Payers Unit, Behind Central Plaza, Near Ayyappa SwamyTemple, Kurnool. 2. Two copies to the Special Standing Counsel for Commercial Taxes, High Court Buildings, Hyderabad (OUT). 3. Two C.D. copies. ARS