ORIENT TRADERS Vs. COMMERCIAL TAX OTFICER I

JUDGEMENT

(1.) This writ petition is filed praying for the issue of writ of certiorari or any other appropriate writ or order and quash the revised assessment proceedings in G.I.NO. 6791/94-95, dated 10-12-1996 after calling for the records relating to the said revised proceedings.

(2.) It is stated that the petitioner was carrying on business in silver as a registered dealer on the rolls of the respondents. Bullion and Specie are taxable at the rate of 2% with effect from 8-7-1983 under item 20 of the first Schedule of Andhra Pradesh General Sales Tax Act, 1957 (hereinafter referred to as 'the APGST Act'). Same rate is also applicable under item 21, with reference to the articles and jewellery made of bullion and/or specie or both, excluding precious stones. It is also stated that Explanation-1 to the said Schedule defines bullion as pure gold or silver and includes gold or silver mixed with copper, led or any other kind of base metal. While so, the Government of Andhra Pradesh issued G.O.Ms.No. 1092 dated 31st October 1994 under Section 9(1) of the APGST Act reducing the net rate of Sales-tax to 1/2 per cent on sale of bullion and specie (Gold). The APGST Act was amended by Act 22 of 1995 with effect from 1st April 1995 prescribing the Sales-tax in the case of bullion and specie at the rate of 4%. Again the Government issued a Notification under Section 9 (1) of the APGST Act in G.O.Ms.No. 252, dated 19th May, 1995 reducing the rate of Sales-tax in the case of bullion and specie (Gold) to 1/2 per cent with effect from 1-4-1995.

(3.) For the assessment year 1994-95, the petitioner returned a turnover in silver bars in a sum of Rs. 14,33,01,470 and paid Sales-tax at the rate of 1/2 % and the assessing authority accepted the said returns and completed the assessment on 27-11-1995. Later, the Assessing Officer issued notice dated 17-08-1996 proposing to reopen the assessment under Section 14(4)(c) of the APGST Act and bringing the above turnover to tax at 2%, apart from additional tax and surcharge, on the premise that G.O.Ms.No. 1092 and G.O.Ms..No. 252 reducing the rate of Sales-tax to 1/2 per cent is applicable only to Gold bullion and specie but not silver bullion. Questioning the said show-cause notice, the petitioner filed W.P.No. 21503 of 1996 and this Court disposed of the said writ petition observing that it would be open to the petitioner to file objections before the Respondent-authorities It is further stated that thereafter the petitioner filed objections before the Respondent claiming that the reduced rate of Sales-tax is applicable not only to gold bullion but also to silver bullion and the bracketed word 'gold' used in the above G.Os. applies only to specie and not to bullion. Thereafter the Assessing Officer rejected the said objections of the assessee and framed reassessment. Questioning the said reassessment, the petitioner has come up before this Court in the present writ petition.