NAGARATNAMMA TEXTILES LTD Vs. C T O

JUDGEMENT

(1.) In these cases WP MPs and MV MPs have come up for hearing. As the argument in the main Writ Petitions, WP MPs and MV MPs is one and the same, the learned Counsel appearing for both the parties have requested that the main Writ Petitions may be disposed of. Accordingly they are heard together and are being disposed of by a common judgment.

(2.) In these cases interpretation of G.O.Ms.No.117, Industries & Commerce (IFR) Department, dated March 17,1993 falls for consideration of this Court.

(3.) For appreciating the question involved in these Writ Petitions, we shall refer to the facts in Writ Petition No.27493 of 1996. The petitioner is a medium scale industrial unit set up at Gudivada for the manufacture of cotton yarn which commenced its commercial production on April 7, 1995. It is also registered as a dealer with the first respondent. The Government of Andhra Pradesh issued orders to provide incentives for newly set up industries in the said G.O.Ms.No.117, dated March 17,1993. The petitioner was sanctioned sales tax deferment amounting to Rs.1,70,11/600/- for a period of 10 years commencing from April 7,1995 (which is the date of commencement of the commercial production) under the said G.O. The petitioner was called upon to pay a tax of Rs.15,48,639/- on the ground that the deferment of sales tax does not apply to purchase of raw material, viz., cotton, which is liable to be taxed at the point of last purchase in the State.