HEDAPLAST INDUSTRIES Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) PETITIONERS, in these batch of writ petitions, question the authority of the Commissioner of Commercial Taxes, to issue circular instructions, interpreting the Order passed by the Sales Tax Appellate Tribunal. The main contention in this regard is though the Commissioner of Commercial Taxes is not so empowered, even under Section 42-A of the Andhra Pradesh General Sales Tax Act, 1957 (APGST Act), his erroneous interpretation, places fetters on the Quasi Judicial powers exercised by statutory authorities under the APGST Act.

(2.) IN order to examine the question raised in these writ petitions, it is sufficient if the facts in W. P. No. 13152 of 2005 are taken note of. The petitioner, carrying on business of manufacture and sale of plastic water storage tanks at Visakhapatnam, is a registered dealer on the rolls of the Commercial Tax Officer, Visakhapatnam. It is the case of the petitioner that storage tanks are plastic containers falling under sub-Item (iv) of Entry 19 of the First Schedule to the APGST Act as amended with effect from 12-5-1997 and are exigible to sales tax at 4%. The Deputy Commissioner of Commercial Taxes. Visakhapatnam sought to revise the assessment order, for the assessment year 1998-99, bringing these plastic water storage tanks under entry 187 relying on the order of the Sales Tax Appellate Tribunal in T. A. No. 270/93 dated 7-10-1996, wherein the question which arose for consideration was as to whether water tanks fell under "articles of plastic" or "water supply and sanitary fittings", in relation to the assessment year 1990-91, which was for a period prior to insertion of sub-item (iv) of Entry 19 to the First Schedule of the APGST with effect from 12-5-1997. It is started that, on being pointed out the distinction, the Deputy Commissioner passed the order, dated 22-8-2002, dropping further proceedings confirming the order of the Commercial Tax Officer assessing the plastic water storage tanks under Entry 19 (iv) of the First Schedule to the Act.

(3.) THE 2nd respondent issued two show cause notices, dated 9-2-2004 for the assessment years 2002-03 and 2003-04, calling upon the petitioner to submit its objections, if any, to his proposal to bring these plastic water tanks to tax under Entry 187 of the First Schedule purporting to follow the circular instructions of the Commissioner of Commercial Taxes (1st respondent) in reference No. Al (1) 1658/2003 dated 27-12-2003. It is contended that, since the circular of the Commissioner of Commercial Taxes is binding on his subordinates, filing of objections before the 2nd respondent is a useless formality. Hence this writ petition. It is stated that since the previous Commissioner, in his letter dated 26-11-2002, addressed to the Accountant General, had clarified that the order of the Sales Tax Appellate Tribunal in Premier Marketing Case applied only to the assessment period to 11-5-1997 and thereafter plastic water tanks were required to be classified under Entry 19 (iv) of the First Schedule, in view of Amendment Act 30/97, it would not be open to his successor to take a contra view by his distorted understanding of the legal position. Reliance is placed on G. O. Ms. No. 857 dated 9-12-1999, wherein the Government is said to have treated plastic containers as falling within the purview of Entry 19 of the First Schedule to the APGST Act, to submit that the contemporaneous understanding of the Government, as reflected in the statutory notification in G. O. Ms. No. 857, cannot be given a go bye, by the Commissioner of Commercial Taxes, while issuing the circular.