GANDURI ESWARAIAH Vs. DY COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) In these three writ petitions, the petitioners have sought a writ of mandamus declaring G.O.Ms. No.780 dated 12.9.1997 and Section 14-C(2) of the A.P.G.S.T. Act, 1956 as arbitrary, illegal and violative of Articles 14 and 19(l)(g) of the Constitution of India and beyond the power of the Legislature and the Government, and consequently to set aside G.O. Ms. No.780 dated 12.9.1997 and Section 14-C(2) of A.P.G.S.T. Act and to direct the 1st and 2nd respondents to complete the assessment of the petitioners on the basis of Section 14-C and pass such orders in the interest of justice.

(2.) Since the issue is common in these three writ petitions, for appreciating the issue we record the facts of the case relating to Writ Petition No. 30752 of 1997 and dispose of these three writ petitions by the following common order.

(3.) Writ petitioners who are dealers of NAPA SLABS in Macherla town of Guntur district, have been carrying on business activity in NAPA SLABS. According to the petitioner, NAPA SLABS are taxed at 16 per cent under item 92 A of the 1st schedule of the A.P.G.S.T. Act. However, in the year 1995, the Andhra Pradesh Legislature brought in an amendment in the Act through Act 22 of 1995. As a result of the said amendment, Section 14-C came to be inserted in APGST. Act with effect from 1-4-1995. By virtue of introduction of 14-C in the Act with effect from 1.4.1995, it was provided that the persons, who are dealing with NAPA SLABS business and whose turnover is less than rupees five lakhs, per year, are entitled to pay sales tax at 2 per cent on their turn-over irrespective of the actual rate of tax on the goods sold by them. It is their case that all the petitioners have opted to pay sales tax under Section 14-C as their turnover was less than rupees five lakhs for the year 1995-96 and onwards. In order to get such benefit, it is further provided that the dealers who wish to avail the benefit of Section 14-C are obligated to file returns in Form 9-A showing the turnover and signifying their option to be taxed under Section 14-C of the A.P.G.S.T. Act. All the petitioners filed their declarations and returns under Form A9.