M/S. Tirumala Dairy PVT LTD., Narsaraopet. vs. The Asst.Commercial Tax Officer, Narsaraopet. - Andhra Pradesh High Court, 28 July 2024

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) MONDAY, THE TWENTY NINETH DAY OF JULY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO AND THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 13266 OF 2006 Between: M/s. Tirumala dairy Pvt. Ltd., 12-9-11, Prakashnagar, Narsaraopet, Rep by its Managing Director, B.Brahmanaidu, S/o.Hanumaiah, Aged about 50 Years. ...PETITIONER AND The Asst. Commercial Tax Officer, CM - Registering Authority, Prakashnagar, Narsaraopet, Guntur District. ...RESPONDENT Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, order or direction particularly in the nature of Writ of Mandamus declaring the proceedings dt.15-06-2006 in R.C.No.01/06-07 in G.l.No.16636 issued by the Assistant Commercial Tax Officer, Narsaraopet, Guntur District imposing a penalty of Rs.21,82,515/- under Section 10A of the Central Sales Tax Act, 1956 for the alleged misuse of the declarations in Form-'C as illegal, improper, arbitrary, without authority of law and without jurisdiction and contrary to the mention of goods specified namely imachinery parts, packing materials, plastics crates ig the prescribed format in Form-A for grant of registration and also M . ' ijj I tb ideclafe the quantification of the penalty based on the rate of tax leviable dp"' sale of unclassified goods under the provisions of APGST Act for the alleged interstate purchase of goods as illegal and ultravires the provisions of Section 10A read with 8(2) of the CST Act, 1956 to set aside the same. I.A. NO: 1 OF 2006(WPMP. NO: 16492 OF 2006) Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to stay all further proceedings arising out of the proceedings of the Assistant Commercial Tax officer, Narsaraopet, dt. 15-06-06 in R.C.No.01/06-07/G.I.No.16636 imposing penalty pending disposal of the writ petition. Counsel for the Petitioner : SRI. M V J K KUMAR Counsel for the Respondents : GP FOR COMMERCIAL TAX Counsel for the Respondents : GP FOR INDUSTRIES & COMMERCE

The Court made the following Order :

APHC010568972006 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Juri iction) [3488] MONDAY, THE TWENTY NINETH DAY OF JULY TWO THOUSAND AND TWENTY FOUR PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE HARINATH.N WRIT PETITION NO: 13266/2006 Between; ...PETITIONER M/s. Tirumala Dairy Pvt Ltd., Narsaraopet. AND ...RESPONDENT The Asst Commercial Tax Officer Narsaraopet Counsel for the Petitioner: 1.M VJ K KUMAR Counsel for the Respondent: 1.GP FOR COMMERCIAL TAX 2.GP FOR INDUSTRIES COMMERCE The Court made the following Order: (perHon’ble Sri Justice R Raghunandan Rao) The petitioner is a diary involved in the supply of milk as well as manufacture of milk products and supply of such products in the State of Andhra Pradesh. It was a registered dealer under the A.P. GST Act, 1957 and CST Act, 1956 for the financial year 2003-2004. The petitioner for the purposes of packing the milk and milk products, sold by the petitioner, had purchased certain packaging material from other States and had issued ‘C’ Forms to the dealers, who had sold the packaging material to the petitioner. 2. ,

I The respondent herein, had issued a show-cause notice to the ^ petitioner, contending that the petitioner could not have issued ‘C’ Forms against the purchase of packaging material, as the said products/goods had not been included in the certificate of registration under the CST Act. The respondent proposed levy of penalty, for such misuse by invoking Section 10(A) of the CST Act, 1956.

3.4.

The petitioner resisted the said proposal on the ground that the milk and milk products which are being sold by the petitioner cannot be sold without being packaged properly and as such, the non-inclusion of the packaging material in the registration certificate of the petitioner cannot

result in the petitioner being penalized for issuing ‘C’ Forms for such purposes. The respondent by an order dated 15.06.2006, had rejected the said contentions and had levied a penalty of Rs.21,82,515/- against the petitioner. Aggrieved by the said order, the petitioner has approached this Court by way of the present Writ Petition.

5.6.

Fleard Sri M.V.J.K. Kumar, learned counsel appearing for the petitioner and the learned Government Pleader for Commercial Taxes. The learned Government Pleader for Commercial Taxes has placed a judgment of a Hon’ble Division Bench of this Court dated 20.10.2022 in W.P.No.12058 of 2002 and contends that the issue raised in the present Writ Petition had been considered by the said Flon’ble Division Bench and orders have been passed in favour of the Revenue.

A perusal of the said judgment would show that ‘C’ Forms used by a cold storage unit against the purchases made by the said cold storage unit from other States were not accepted on the ground that the non-inclusion of such goods in the registration certificate, under the CST Act, would preclude such dealers from utilizing ‘C’ Forms and consequently such utilization would attract penalties under the Act. 8. t;

We are in respectful agreement with the said down by the Hon’ble Division Bench, dismissed. There shall be no order as to costs. As a sequel, pending miscellaneous petitions, if any. shall stand closed. proposition of law laid Consequently, this Writ Petition is P.VENKAT RAMANA JOINT^REGISTRAR k //// SECTI OFFICER To,

One CC to SRI. M V J K KUMAR Advocate [OPUCJ-

Two CCs toGP FOR COMMERCIAL Pradesh. [OUT]

Two CCs to GP FOR INDUSTRIES Andhra Pradesh. [OUT]

Three CD Copies TAX, High Court of Andhra & COMMERCE, High Court of DPBR

HIGH COURT DATED:29/07/2024 ORDER WP.No.13266 of 2006 DISMISSING THE WP WITHOUT COSTS