ANDHRA BANK Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) IN this writ petition filed by Andhra Bank, the validity of Section 13 -B of the Andhra Pradesh General Sales Tax Act, Rule 56 -A of the Andhra Pradesh General Sales Tax Rules and the circular No. D3/14465/89 dated 7.6.89 of the Deputy Commissioner, Commercial Taxes, Abids, Hyderabad, is questioned. The validity of Section 13 -B of the Andhra Pradesh General Sales Tax Act and Rule 56 -A of the Andhra Pradesh General Sales Tax Rules has been considered by a Division Bench of this Court in Syndicate Bank Vs. State of Andhra Pradesh and Others 1990 Vol. 11 APSTJ P. 288. Under Section 13 -B of the Act, every scheduled bank, including any branch of such bank is required to submit in each month a return in the prescribed form of all bills relating to goods discounted, cleared or negotiated and the payments and receipts relatable to the sale or purchase of goods transacted by or through it during the preceding month in such manner and within such period as may be prescribed, at the request of the assessing authority concerned. Rule 56 -A of the Andhra Pradesh General Sales Tax Rules prescribes the procedure. Considering the validity of the provisions of the Act and the Rules, the Division Bench held as follows:

(2.) IT is submitted by the learned counsel for the petitioner that this circular is contrary to the decision, of the Division bench referred to above and, therefore, it has to be quashed. We see force in the contention of the learned counsel. The Division bench held that the Commercial Tax Officer has no blanket jurisdiction to call for particulars in Form A8. It was pointed out that under Section 13 -B the banks can be called upon to furnish certain information in relation to a dealer and in relation to a particular assessment. In view of that specific observation of the Division Bench the circular issued by the Deputy Commissioner referred to above cannot be sustained. Therefore, it has to be quashed. As the Division Bench has pointed out, this does not in any way preclude the Commercial Tax Authorities to call upon the Banks to furnish certain information in relating to a dealer and in relation to a particular assessment. The writ petition is allowed to the extent indicated above. No orders as to costs. Advocates fee Rs. 250/ -.