B ARUNKUMAR TRADING PRIVATE LIMITED MUMBAI Vs. COMMERCIAL TAX OFFICER KURUPAM MARKET ROAD VISAKHAPATNAM

JUDGEMENT

(1.) This batch of Writ petitions raise some questions of law and fact and revolve around the interpretation to be placed on relevant entries in the First Schedule of the Andhra Pradesh General Sales Tax Act, 1957. These petitions also raise questions with regard to the power of the Government to issue circulars interpreting the entries in the Schedule to the A.P. General Sales Tax Act, 1957. These petitions are therefore proposed to be decided through one common judgment.

(2.) A common counter has been filed and we have heard the learned Counsel for the parties in detail. Controversies have been raised in the light of the following material facts :The petitioners in all the Writ petitions are dealing with edible oils and are private limited companies registered in accordance with law. They are also registered as dealers under the A.P. General Sales Tax Act, 1957 (herein after referred as 'APGST Act') and the Central sales Tax Act, 1956 (hereinafter referred as "CST Act"). They import unrefined Sunflower oil and refined Palmolien and sell it within the State of Andhra Pradesh. The contention of the petitioners is that they have been paying Sales tax at the rate of 2% under items 24-A and 24-B of the First Schedule of the APGST Act and under the CST Act. They have been duly filing their returns. They further submit that for the years 1995-96 and 1996-97 the respondent No. 1 passed final assessment orders on the same basis. Copies of the assessments in case of B. Arun Kumar Trading Private Limited have been annexed with the petition. It is further stated that Vegetable oils are an essential commodity and are used by every section of the society and it has been the policy of the Government to levy tax on such goods at minimum rates and it is evidenced according to the petitioners by G.O. Ms. No.401 dated 16/08/1995 and G.O. Ms. No.415 dated 17/05/1997. These G.Os grant rebate of tax on sales of refined oils derived from tax suffered unrefined oil. It is further stated that the petitioners have paid or are paying sales tax at the rate of 2% on the sales of imported Palmolien oil and Sunflower oil under the APGST Act. The petitioners further state that till 1994 the Government policy on oil seeds and edible oils was aimed at improving productivity and attaining self sufficiency but since there was a large gap between the production and supply, therefore wide fluctuations in the prices was witnessed. International prices of edible oils were 50% less as compared to prices in India, therefore the consumers were suffering and the Government of India keeping these facts in view took certain measures to improve the position. Following measures were taken by the Government of India:

(3.) It is the contention of the petitioners that by reason of the policy of the Government of India, the prices of the edible oils got stable because of the import of the oil, and last year nearly 25% of the country's needed oil was imported. Further, the petitioners state that Sales tax in most of the States including Kamataka, Gujarat, West Bengal and Madhya pradesh is 2% whereas in Maharashtra it is only 1.5%. By all these factors effort has been made by the petitioners to show that it has been the effort of the Governments to reduce the tax on edible oils to the minimum levels. The Government of Andhra Pradesh fixed a schedule of rates of tax on edible oils by Act No.27 of 1996 with effect from 16/08/1995. As a consequence of Act 27 of 1996, entries 24-A, 24-B, 24-C and 24-D came into operation with effect from 16/08/1995. These entries need to be reproduced: