VENKATA RAMANA RICE MILLS PEDAKAPAVARAM WEST GODAVARI DISTRICT Vs. COMMISSIONER OF COMMERCIAL TAX A P HYDERABAD

JUDGEMENT

(1.) In all these writ petitions, the controversy is with regard to the view taken by a two Members Bench of the Tribunal in Satyanarayana Raw and Boiled Rice Mill v. State of A.P. (STAT), 34 APSTJ 153, on the question of determining the tax component on the sale of rice.

(2.) Learned Counsel representing the petitioners stated that in order to work out sales tax component on the sale cost of rice, a formula is provided under Section 8A(1) of the Central Sales Tax Act (for short 'the Act') which is identical to Rule 6(1) of the A.P. General Sales Tax Rules. Learned Counsel also stated on earlier occasion, the validity of the formula as provided under the Act fell for consideration before this Court and this Court upheld the same.

(3.) A Three Member Bench of the A.P. Sales Tax Tribunal followed the view taken by this Court and rendered a decision in Badrinadh Rice Mill and another v. State of A.P. (STAT), 29 APSTJ 181. Since then, the department was following the decision of the Three Member Bench of the Sales Tax Tribunal and deciding the sales tax component on the sale cost of rice. However, the Two Member Bench of the Tribunal took a contra view in Satyanarayana 's case (supra). Basing on the Two Member Bench decision, the Commissioner, Commercial Tax Department issued a circular to all concerned to revise the assessment made by the original authority and, further, required the assessing authority to decide the tax component on the sale cost of rice as per the ratio laid down in Satyanarayana's case (supra). On the basis of the circular instructions issued by the Commissioner, Commercial Tax Department, the concerned Deputy Commissioners have revised the assessments while exercising jurisdiction under Section 20 of the A.P. General Sales Tax Act and further all the assessing authorities are deciding the tax liability as per the circular instructions issued by the Commissioner, Commercial Tax Department. Learned Counsel also stated as long as the law laid down by the Three Member Bench of the Tribunal in Badrinadh's case (supra) holds the field, which is binding on all the authorities in the State of Andhra Pradesh, the ratio laid down by the Two Member Bench in Satyanarayana's case (supra) could not have been followed by the Commercial Tax Department. The revisions or assessments made pursuant to the circular instructions issued by the Commissioner, Commercial Tax Department, based on Two Member Bench decision, cannot be sustained.