PADMA OIL COMPANY Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) The petitioners are dealers in groundnut oil, etc. Groundnuts are covered by item 6 of the Third Schedule to the Andhra Pradesh General Sales Tax Act, 1957. The petitioners along with other dealers filed a batch of writ petitions in this Court challenging the entry on the ground that the point of levy of tax is uncertain and therefore the entry is not effective. Having filed the writ petitions the petitioners applied for stay of collection of tax. This Court, however, ordered that assessment shall be completed but that the tax shall not be collected pending orders of this Court. The batch of writ petitions were later dismissed in toto, against which order the petitioners went to the Supreme Court admitted the appeals and granted stay in the first instance but subsequently on the application of the State, the Supreme Court directed the petitioners to pay tax due in three equal quarterly instalments. The petitioners have accordingly paid the tax. Subsequently the appeals before the Supreme Court were also dismissed. The department thereupon issued notices to the petitioners calling upon them to pay the interest as per section 16(3) of the Andhra Pradesh General Sales Tax Act for period commencing from the date of service of the notice of assessment till the date of payment of tax. This demand was again questioned by way of appeals by the petitioners and both the appellate authorities have negatived their complaint. Hence this batch of T.R.Cs.

(2.) Section 16(1) of the Andhra Pradesh General Sales Tax Act says that

(3.) The Rules provide that the notice of assessment shall be served in form B-3. Form B-3, in so far as it is relevant, reads as follows :