- (1.) These appeals are against the judgement of the Andhra Pradesh High Court dated 2.9.1998.
(2.) Briefly stated, the facts are as follows: Under the Andhra Pradesh General Sales Tax Act of 1957, sales tax was leviable on jewellery at the rate of 4%, by virtue of Item 21 of the First Schedule. On 19.5.1995, GO No. 252 was issued. The relevant portion of which reads as follows: "(b) that the tax leviable under the said Act shall in respect of sale of jewellery including those set with precious stones be at the reduced rate of 2%. (c) that the tax leviable under the said Act shall in respect of sale of precious stones, loose, other than pearls, be at the reduced rate of 2%." Thus, by virtue of this GO, the rate of tax on jewellery was reduced to 2%.
(3.) On 15.4.1997, GO No. 303 was issued which referred to GO No. 252 and the relevant portion provided as follows: "(a) Clause (b) of the said notification shall be rescinded. (b) The tax leviable under the said Act shall be in respect of sale of precious stones, loose, other than pearls, be at the reduced rate of 3%." It is clear that by virtue of this GO, tax on precious stones, other than pearls was to be levied at the rate of 3%. But clause (b) of the earlier GO No. 252 stood rescinded. The effect of this was that on jewellery tax again became leviable at the rate of 4%. It appears that some jewellers and even some assessing officers were unaware of this GO. Therefore some returns were filed indicating tax levied at the rate of 2%. Some of these returns have been accepted by some of the assessing officers.;