ITC LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THE petitioner seeks a declaration that the impugned notice issued by the 2nd respondent dated 20. 3. 2009 is void abinitio, non-est, without authority of law, illegal and invalid.

(2.) THE petitioner, carrying on business of manufacture and sale of cigarettes, is registered under the APVAT Act. They were also registered as a tobacconist, under the A. P. Tax on Luxuries in Hotel and Lodging Houses Act, 1987 (hereinafter called 'luxury Tax Act'), from August, 1996. The Luxury Tax Act was amended on 1. 8. 1996 and its scope was enlarged to include levy of luxury tax on supply of tobacco and tobacco products. The petitioner filed W. P. No. 16909 of 1996 before this Court challenging the vires of the said Act. Though the writ petition was admitted, no interim order was granted in the petitioner's favour pending disposal of the writ petition. The 2nd respondent passed order dated 31. 03. 1998 for the assessment year 1996-97, under the Luxury Tax Act, allowing the exemptions claimed by the petitioner. The challenge to the validity of the luxury Tax Act was, however, rejected by a Division Bench of this Court by its order dated 12. 11. 1998 and appeals were preferred thereagainst to the Supreme court.

(3.) THE Deputy Commissioner (CT), Visakhapatnam revised the assessment order passed by the 2nd respondent and held that the petitioner was liable to pay tax of rs. 4,80,71,375/- under the Luxury Tax Act. The petitioner preferred an appeal to the Sales Tax Appellate Tribunal in T. A. No. 893 of 2000. In the meanwhile, the constitution bench of the Supreme Court, by judgment dated 20. 01. 2005, held that the Luxury Tax Act was beyond the legislative competence of the State and was unconstitutional. The appeal preferred by the petitioner, in T. A. No. 893 of 2000, was transferred to the Sales Tax Appellate Tribunal, Visakhapatnam and the tribunal, by its order dated 20. 11. 2006, dismissed the said appeal.