SRI RAJARAJESWARI PARBOILED RICE INDUSTRY Vs. COMMERCIAL TAX OFFICER KODAD NALGONDA DIST AND OR CONNECTED CASES

JUDGEMENT

(1.) THE writ petitioners, almost all of whom are rice millers, have filed these writ petitions either questioning the circular issued by the Commissioner of Commercial Taxes, Andhra Pradesh in CCTs. Ref. A. 11 (1)/2954/96, dated June 24, 1998 or the assessment orders - provisional or final, made under the A. P. General Sales Tax Act, 1957, against them. In some of the assessment years, for instance in W. P. No. 28355 of 1998, a reference has been made to the circular of the Commissioner and the claim for exemption was negativated on the basis of the said circular.

(2.) THE relevant portion of the circular, which was issued after clause (ca) was introduced into section 15 of the Central Sales Tax Act by Finance Act of 1996, reads as follows :

(3.) COMING to the broad facts of the case, the petitioners purchase the paddy within the State, convert them into rice and sell the rice to the dealers who export the rice pursuant to the orders placed on them by the foreign buyers. Under section 5 (3) of the Central Sales Tax Act, the last sale or purchase of any goods preceding the sale or purchase occasioning the export of those goods shall be deemed to be in the course of such export, if such last sale or purchase took place after, and was for the purpose of complying with the agreement or order for or in relation to such export. This provision was introduced in the year 1976 in order to expand the ambit of tax immunity extended to the transactions intimately connected with export. The Central Sales Tax Act, 1956, was further amended in the year 1996 by adding clause (ca) to section 15 so as to amplify the scope of immunity under section 5 (3) to the export transactions involving rice. Clause (ca) of section 15 reads as follows :