STATE OF ANDHRA PRADESH Vs. KEDIA VANASPATI P LIMITED

JUDGEMENT

(1.) The State questions the order of the Sales Tax Appellate Tribunal, in T.A. No. 79 of 1982 dated 21/08/1985, allowing the appeal of the assessee and holding that the order of the assessment which was completed before 17/01/1978, when clause (cc) of sub-section (4) of section 14 of the Andhra Pradesh General Sales Tax Act, 1957 (hereinafter referred to as "the Act"), came into force, cannot be reopened.

(2.) The assessee is a trader and deals in groundnuts. The dispute related to the assessment year 1974-75. The assessment for the said year was completed on 27/09/1977, granting certain exemptions in respect of turnover relating to groundnuts. Subsequently, the assessing authority revised the said order in exercise of the power under section 14(4)(cc) of the Act on 25/09/1981. On appeal, the appellate authority partly allowed the appeal in regard to a part of the turnover and remanded the matter with regard to the balance of the turnover by order dated 14/12/1981. The assessee then carried the matter in appeal before the Sales Tax Appellate Tribunal. The contention that was urged before the Tribunal was that as section 14(4)(cc) came into force on 17/01/1978 and the final assessment was completed on 27/09/1977, the same could not be reopened after insertion of clause (cc) in section 14(4). The Tribunal came to the conclusion that in view of the judgment of this Court in Fatechand and Sons v. Commercial Tax Officer [1983] 54 STC 166, the assessing authority could not have reopened the assessment and accordingly allowed the appeal of the assessee on 21/08/1985.

(3.) The learned Government Pleader contends that in view of the judgment of this Court in State of Andhra Pradesh v. Sreenivas Trading Co. [1989] 75 STC 206, the assessing authority has power to reopen assessment where the exemption was wrongly granted under section 14(4)(a) and/or (b) of the Act, and that the order of the Tribunal has to be set aside.