M/s. Sri Venkteswara Rice Mill vs Commercial Tax Officer

APHC010162312023 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3488] WEDNESDAY,THE FOURTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION Nos.8350, 8532, 12519, 13889, 13977, 15291, 16403, 17244, 19153, 19197, 19285, 20023, 20055, 20272, 20273, 20280, 20287,20396, 20471, 20473, 20619, 20624, 20757, 20806, 20887, 20890, 20893, 20960, 20964, 21368, 21370, 22222, 22385, 22651, 23992, 26568&26710 of 2023 Between: M/s.

Adilaxmi Industries ...PETITIONER AND Commercial Tax Officer and Others ...RESPONDENT(S) Counsel for the Petitioner: 1.

SRINIVASA RAO KUDUPUDI Counsel for the Respondent(S): 1.

GP FOR COMMERCIAL TAX The Court made the following Common Order:(per Hon’ble Sri Justice R.

Raghunandan Rao) All these Writ Petitions are being disposed of by way of this Common Order as they raise similar questions of fact and law.

2.

Heard Sri Srinivasa Rao Kudapudi, learned counsel for the petitioners and the learned Government Pleader for Commercial Tax.

2 3.

The petitioners, in all these cases are rice millers who are involved in the business of milling of rice and selling the said rice and broken rice to persons within the State and outside the State.

They are registered under the Central Sales Tax, Act 1956 [for the “the CST, Act”].

The sales, in the present set of Writ Petitions, relate to sales undertaken under the CST, Act.

The normal rate of tax payable by a dealer selling goods under the CST, Act would be 4/5% (The rate of 4% was increased to 5% on 15.09.2011).

However, the dealers are permitted to pay tax, under the CST, Act, at a concessional rate of 2% if they were able to produce C-Forms issued by their purchasers affirming that the said goods would either be consumed by the purchasers or would be resold by the purchasers in their respective States.

4.

States.

A large number of rice millers and persons dealing with rice had represented to the Government that they were facing immense difficulties in obtaining C-Forms from their purchasers in other States as some of the States had exempted the purchase of sale of rice from tax etc.

The Government, after considering such representations had issued a series of memos waiving payment of tax at the full rate and permitting payment of tax at the rate of 2%, even in cases where necessary C-Forms was not produced before the assessing officers.

The Government, had initially issued a Memo.No.26197/CT-II(1)/2013, dated 10.05.2016.

The relevant paragraph No.2 of the said memo reads as follows:- “Paragraph No.2:-Government, after careful consideration of the request and in pursuance of the resolution of the Council of Ministers in the reference 4th cited, hereby order to waive the tax payable under CST Act over and above 2% in the absence of C-Forms till 31.05.2014, only for those Rice Millers and 3 dealers in Pulses &Dalls, who remit the tax completely as per the provisions of the CST Act for the period from 01.06.2014 to 31.12.2015 before 30.06.2016 after getting their assessments completed expeditiously.

The waiver shall be subject to production of Lorry Receipts/Railway Receipts, CST waybills, proof of exit through the last notified check-post in Andhra Pradesh and proof of receipt of sale consideration from the buyers to prove that the goods were sold to the dealers in other states in the course of inter-state trade.

The waiver is not applicable to those Rice Millers and dealers in Pulses &Dalls who have defaulted in payment of even 2% tax.

Taxes already paid shall not be refunded under any circumstances.” 5.

Subsequently, the Government of Andhra Pradesh again issued Memo No.26197/CT-II(1)/2013, dated 27.09.2016, wherein the terms and conditions for grant of waiver were set out. e set out.

The relevant part of the said memo reads as follows: “Considering their representations and in pursuance of Resolution No.693/2016, Dt.24.08.2016 of the Council of Ministers, Government, in partial modification of the terms and conditions set out in the waiver orders issued in the reference 5th cited, hereby order to waive the tax payable under the Central Sales Tax (CST) Act over and above 2% in the absence of “C”-Forms by Rice Millers and the dealers in Pulses &Dalls till 31.05.2014, subject to the following terms and conditions: i) The waiver is applicable only to those dealers who remit the tax completely as per the provisions of the CST Act for the period from 01.06.2014 to 31.12.2015 before 31.12.2016 after getting their assessments completed. ii) The waiver shall be subject to production of lorry receipts/railway receipts and CST way bills. iii) The waiver shall also be subject to production of proof of exit through the last notified check-post in Andhra Pradesh or production of ledger account or day book entry relating to payment of charges for transporting the goods to other States. iv) The waiver shall not be applicable to those dealers who have defaulted in payment of even 2% tax. v) Taxes already paid shall not be refunded under any circumstances.” 6.

The Government of Andhra Pradesh again issued a Memo.No.REV-35024/37/2016-CTII, dated 09.03.2017.

Under this memo, the cutoff date for completion of assessments for the period from 01.06.2014 to 31.12.2015 was extended till 30.06.2017.

The Government again issued another Memo No.REV-35024/3/2017-CT-II, dated 05.09.2018 extending the cutoff date from 30.06.2017 to 30.09.2018.

These memos also stipulated that 4 the terms and conditions set out in the memo dated 27.09.2016 shall remain applicable for obtaining waiver of tax.

7. of tax.

7.

The petitioners, herein, who are registered dealers with the Commercial Tax Officer, Peddapuram Circle, Peddapuram, Commercial Tax Officer, Ramachandrapuram Circle, Ramachandrapram, Commercial Tax Officer, Alcot Gardens Circle, Rajahmundry, Commercial Tax Officer, Jagannaickpur, Kakinada and Commercial Tax Officer, Mandapeta in East Godavari District had approached these tax officers for waiver.

The applications for such waiver appear have to be made in the year-2019 onwards.

The tax authorities had issued endorsements, which are impugned in the present set of Writ Petitions, rejecting these applications for waiver.

The said orders of rejection were passed essentially on the following grounds:- i.

The assessments for the relevant period had already been completed more than four years prior to the date of endorsement and as such, the tax authority is not in a position to re-assess the tax as Rules 14(A) sub- rules 8, 9 & 15 of the Central Sales Tax (Andhra Pradesh) Rules, 1957 [for the short “the CSTAP Rules”] do not permit a re-assessment beyond four years. ii.

The petitioners would be eligible for waiver of tax only if all the necessary documentary evidence stipulated under the aforesaid memos were furnished before the last cutoff date on 30.09.2018, whereas the petitioners have submitted their documents from the year 2019 onwards, along with their applications for waiver and as such, the documents cannot be looked into by the taxing authorities and consequently, no waiver can be granted. iii.

In some of the cases, the taxing authorities also took the view that the necessary documents which are necessary for grant of waiver had not been filed.

5 8.

These endorsements are set out in the table below: Sl.

No Name of the Petitioner CTO circle Writ PetitionNu mber Assessment Years Endorsement /Order date 1 Chaitanya Modern Rice Mill Ramachandrapuram 13889/2023 2011-12 to 2013-14 25.05. -14 25.05.2023 2 Chaitanya Agro Industry Ramachandrapuram 17244/2023 2011-12 & 2012-13 26.06.2023 3 Shree Gowthami Rice Industries Ramachandrapuram 13977/2023 2010-11 to 2014-15 30.05.2023 4 Sri Lakshmi Ganapathi Rice Industries Ramachandrapuram 22385/2023 2013-14 05.06.2023 5 Chandrika Rice Mill Ramachandrapuram 22651/2023 2011-12 to 2014-15 05.06.2023 6 RamireddyAgro Industry Ramachandrapuram 23992/2023 2011-12 to 2014-15 05.06.2023 7 Sri Venkateswara Rice Industries Ramachandrapuram 20964/2023 2014-15 30.06.2023 8 Adilaxmi Industries Peddapuram 8350/2023 2011-12 to 2013-14 27.03.2023 9 Sri Balaji Biled& Raw Rice Mill Peddapuram 8532/2023 2011-12 to 2013-14 27.03.2023 10 Sri Venkateswara Rice Industries Peddapuram 16403/2023 2011-12 to 2014-15 27.06.2023 11 RaghuramaRice Industry Jagannaickpur circle 20396/2023 2013-14 & 2014-15 04.07.2023 12 Sri Ramalingeswara Modern Rice Mill Jagannaickpur circle 20806/2023 2011-12 to2013-14 30.06.2023 13 Nallamilli Satyanarayana Reddy & others KKD Port circle 15291/2023 2011-12 to 2014-15 17.05.2023 14 Sri Seetharama Raw & Boiled Rice Mill Mandapeta 20624/2023 2012-13 28.06.2023 15 Sri Satyam Rice Mill Mandapeta 20890/2023 2012-13 & 2013-14 30.06.2023 16 Jayalakshmi Panduranga Rice Mill Mandapeta 20757/2023 2012-13 28.06.2023 17 AravindaAgro Industry Mandapeta 20471/2023 2011-12 to 2012-13 31.05.2023 18 NS Reddy & Others Mandapeta 19285/2023 2012-13 to 2014-15 19.06.2003 19 Konagalla Satyanarayana &Others Mandapeta 20619/2023 2011-12 to 2013-14 28.06.2023 20 Sri Srinivasa Rice Mill Mandapeta 20893/2023 2012-13 to 2014-15 28.06.2023 21 Satyanarayana Traders Mandapeta 21368/2023 2011-12 to 2013-14 06.06.2023 22 Sri Sai Durga Foods Mandapeta 22222/2023 2011-12 to 2014-15 30.06.2023 23 Satyakrishna Modern Rice Mill Mandapeta 21370/2023 2011-12 to 2014-15 06.06.2023 24 Ashta Lakshmi Rice Industry, Mandapeta 26568/2023 2011-12 to 2013-14 12.06. -14 12.06.2023 25 Sri Venkateswara Boiled & Raw Rice Mill Alcot Gardens, RJY 19197/2023 2011-12 to 2014-15 01.06.2023&0 7.07.2023 26 Padmasri Rice Mill Alcot Gardens, RJY 20272/2023 2011-12 to 2014-15 07.07.2023 27 Surya Sri Rice Mill Alcot Gardens, RJY 20280/2023 2011-12 to 2014-15 07.07.2023 28 Sri Buchiyyamma Rice Mill Alcot Gardens, RJY 20473/2023 2011-12 to 2013-14 07.07.2023 29 MGR Rice Industries Alcot Gardens, RJY 19153/2023 2011-12 to 2014-15 07.07.2023 30 Sri Venkateswara Rice Mill Alcot Gardens, RJY 20273/2023 2011-12 to 2014-15 07.07.2023 31 Sri Srinivasa Rice Mill Alcot Gardens, RJY 20287/2023 2011-12 to 2014-15 07.07.2023 32 Sri Sapthagiri Foods Alcot Gardens, RJY 26710/2023 2011-12 to 2014-15 07.07.2023 33 Shir Aaurthor Cotton Modern Rice Mill Alcot Gardens, RJY 20023/2023 2011-12 to 2014-15 01.06.2023 34 Sri Ramalingeswara Rice Mill Alcot Gardens, RJY 20055/2023 2011-12 to 2013-14 07.07.2023 35 Sri Kodandarama Boiled & Raw Rice Mill Alcot Gardens, RJY 12519/2023 2011-12 24.04.2023 36 Sri Kodandarama Boiled & Raw Rice Mill Alcot Gardens, RJY 20887/2023 2012-13 & 2013-14 07.07.2023 37 Sri Venkateswara Rice Industry Alcot Gardens, RJY 20960/2023 2012-13 to 2013-14 07.07.2023 9.

Aggrieved by these endorsements, rejecting the applications for waiver, the petitioners have approached this Court, by way of the present set of Writ Petitions.

6 10.

A decision has been taken in regard to these issues by this Division Bench by an order dated 07.08.2024 in W.P.Nos.23966 of 2023 & Batch.

11.

Following the above said Judgment, these Writ Petitions are disposed of with the following directions:- 1.

The Endorsements issued by the respective tax authorities, which are set out in the table above, are set aside.

The respective tax authorities, shall consider the applications of the petitioners afresh and grant waiver to those petitioners who are able to comply with the requirements of the documents set out in the memos.

3. memos.

3.

This exercise shall be completed within a period of two (2) months from the date of receipt of this Order.

No coercive steps shall be taken against any of the petitioners, on the basis of the earlier assessment orders, until a decision on the grant of waiver is completed.

There shall be no order as to costs.

As a sequel, pending miscellaneous petitions, if any, shall stand closed. ________________________ R.

RAGHUNANDAN RAO, J. ______________ HARINATH.N, J.

BSM 7 HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO AND HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION Nos.8350, 8532, 12519, 13889, 13977, 15291, 16403, 17244, 19153, 19197, 19285, 20023, 20055, 20272, 20273, 20280, 20287, 20396, 20471, 20473, 20619, 20624, 20757, 20806, 20887, 20890, 20893, 20960, 20964, 21368, 21370, 22222, 22385, 22651, 23992, 26568 & 26710 of 2023 (per Hon’ble Sri Justice R.

Raghunandan Rao) Date: 04.09.2024 BSM