STATE OF ANDHRA PRADESH Vs. SREENIVAS TRADING COMPANY

JUDGEMENT

(1.) The respondent is a dealer in fertilizers at Kamareddy. For the assessment year 1975-76 as per the order dated 29/09/1976, the assessing authority granted exemption on a turnover of Rs. 65,297 on the ground that it pertains to second sales of fertilizers. During the relevant time, fertilizers were subject to tax at the point of first sale within the State.

(2.) On the basis of some information, the assessing authority found that the said turnover represented first sales of fertilizers within the State. Hence he exercised the power under section 14 of the A.P. General Sales Tax Act, 1957 (hereinafter referred to as "the Act") and by the order dated 10/01/1980, he reassessed the said turnover, and tax on the same was demanded by holding that exemption or deduction in regard to the above turnover was wrongly granted. The order dated 10/01/1980 was passed under section 14(4)(cc) of the Act and it was confirmed in appeal by the Assistant Commissioner (C.T. Appeals), Hyderabad.

(3.) Section 14(4)(cc) had come into effect on 17/01/1978. The Sales Tax Appellate Tribunal held that section 14(4)(cc) of the Act had no retrospective effect and hence it could not be invoked in respect of assessments that were finalised prior to 17/01/1978. The decision of this Court in Udipi Vasanta Vihar v. Deputy Commercial Tax Officer [1969] 23 STC 6 was referred to in support of the same. As in this case the order of assessment was passed prior to 17/01/1978 and in the view that section 14(4)(cc) had no retrospective effect, the appeal was allowed and the order of reassessment dated 10/01/1980 was set aside.