SIRPUR PAPER MILLS LIMITED Vs. VAMAN RAO

JUDGEMENT

(1.) The petitioner challenges the proceedings, dated 18.02.1997, issued by the 2nd respondent, and the consequential letter, dated 20.04.1999, issued by the 1st respondent.

(2.) The petitioner is a paper mill. One of the important raw materials for it is bamboo, which is exclusively supplied by the forest department of the Government of Andhra Pradesh. The contracts entered into for supply of bamboo are of two categories. Under the first category, the forest department itself cuts the bamboo to the required sizes, bundles the bamboo and stacks at a point, from which, the petitioner can transport. Under this category of contracts, the petitioner has to pay the selling price of the bamboo as well as the extraction charges. Under the second category of contracts, the petitioner undertakes the activity of cutting, bundling and stacking the bamboo. Therefore, it would be under obligation to pay selling price alone.

(3.) In respect of the period between 1991-1992 and 1994-1995, the selling price as well as extraction charges were paid. However, on the ground that an audit objection was raised for not levying interest on belated payment of extraction charges, the 2nd respondent issued a notice, dated 18.02.1997. On receiving the same, the petitioner submitted his representation, dated 01.09.1997, alleging that the agreement for purchase of the bamboo does not provide for levy of interest on the extraction charges. Not being satisfied with the same, the 1st respondent issued the impugned notice, dated 20.04.1999, to the petitioner.