1 V IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) FRIDAY, THE NINTH DAY OF MAY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R.RAGHUNANDAN RAO AND THE HONOURABLE SRI JUSTICE B.V.L.N.CHAKRAVARTHI WRIT PETITION Nos: 7514 of 2020: 20411, 20429 & 20551 of 2021 WRIT PETITION NO: 7514 OF 2020 Between: M/s ACME FITNESS PVT LTD, A Company incorporated under the Companies Act, 1956, having its Registered Office at Chennai with one of its Branches at Shop No.45, St. Paul's Complex, Nirmala Convent Road, Patarnata, Vijayawada, AP - 520 001, rep. by its Authorised Signatory. ...Petitioner The State of Andhra Pradesh, efep. by its Principal Secretary to Government Commercial Tax Department, AP Secretariat Velagapudi, Amaravathi, Guntur District.. The Commissioner of Commercial Taxes, State of Andhra Pradesh Eedupugallu, Kankipadu Mandal, Vijayawada, Krishna District, AP - 521 1. 2. 144 3. The Deputy Commissioner, (CT) 2 Division Autonagar, Viiayawada Krishna District, A.P. The Commercial Tax Officer, Autonagar Circle, Vijayawada Krishna District, A.P. The Assistant Commercial Tax Officer -, IV Autonagar Circle Vijayawada Krishna District, A.P. 4. 5. ...Respondents Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court be pleased to may 2 a) Call for the records culminating in the in A.O.No.166188, dated ^^/08/2019 including the consequential demand notices dated 31/08/2019, 4 viz., the 09 07/03/2020 issued by the Respondent No. 4 fercial Tax Officer, Autonagar Circle, Vijayawada b) quash the same by issuance of a Writ, more particularly one in the nature of a Writ of Certiorari 4.' or any other appropriate Writ, Order Direction, while declaring that the same is wholly without jurisdiction, and pass such further or other orders as this Hon'ble Court may deem fit and or proper in the circumstances of the case, while awarding of costs of these proceedings and render justice. lA NO: 2 OF 2020 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 suspend the operation of the impugned order in A.O.No.166188, dated 31/08/2019 including the consequential demand notices dated 31/08/2019, 09/01/2020 & 07/03/2020 issued by the CTO, Autonagar Circle, Vijayawada, pending disposal of the Writ Petition. Counsel for the Petitioner: SRI G V S GANESH Counsel for the Respondents: GP FOR COMMERCIAL TAX WRIT PETITION NO: 20411 OF 2071 Between: Registered Office d Chennai with one of its Branches at Shop No.45, St.Paul's Complex Nirmala Convent Road, Patamata, Vijayawada, AP - 520 001 Rep by Its Authorized Signatory Mr. Durga Rao Kallem. ’ ^ ...Petitioner at -■•■I AND 1. The State of Andhra Pradesh, Rep. by its Principal Secretary to Government Commercial Tax Department, A.P. Secretariat Velagapudi, Amaravathi, Guntur District. 3 2. The Chief Commissioner of State Taxes, State of Andhra Pradesh Eedupugallu, Kankipadu Mandal, Vijayawada, Krishna District, AP - 521 144. 3. The Deputy Commissioner (CT), , No.2 Division, Autonagar, Vijayawada Krishna District, AP State. 4. The Deputy Assistant Commissioner-ll, Autonagar Circle, Vijayawada, Krishna District, AP. 5. The Commercial Tax Officer, Assistant Commissioner (ST), Autonagar Circle, Vijayawada Krishna District, AP State. ...Respondents 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 prayed to issue. Writ, Order or Direction more particularly one in the nature of Writ of Certiorari calling for the records in relating to the Revised Show Cause notice dated 25.02.2021 issued by the 5th respondent, the Final Assessment Order for 2016-17 year dated 30.03.2021 and the consequential Urgent notice issued by the 4th respondent dated 28.07.2021; and' set-aside the arbitrary, atrocious, contrary to the established law same being illegal, contrary to the provisions of the CST Act / AP VAT Act and violative of Article 19(1)(g) and Article 265 of the Constitution of India. lA NO: 1 OF 2021 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in supporf of the petition, the High Court may be pleased to stay of all further proceedings relating and in pursuance to the Revised Show Cause notice »dated 25.02.2021 issued by the 5th respondent, the Final Assessment Order for 2016-17 year dated 30.03.2021 and the consequential Urgent notice issued by the 4th respondent dated 28.07.2021 pending disposal of the Writ Petition in the interest of justice. Counsel for the Petitioner: SRI G TUHIN KUMAR Counsel for the Respondents: ADDL ADVOCATE WRIT PETITION NO: 20429 np oriOA general II / Between: itsTulhoriSaSign^ato^MSfga R^arKate^ ...Petitioner AND Rep. by its Principal Secretary Government Commercial Tax Department, A.P. Secretariat ^ Velagapudi, Amaravathi, Guntiir District. 2. The Chief Commissioner of State Taxes, State of Andhra Pradesh Eedupugallu, Kankipadu Mahd'al, Vijayawada, Krishna District, AP - 521 smte^rfIt '-egal, O/o Commissioner of VijaW'l^sl^a ^upugallu, Kankipadu Mandal KrifhnfD!s^ricrA"p siate"^ Vijayawada to ril-Ho .Officer/ Assistant Commissioner (ST), Autonaqar Circle, Vijayawada Krishna District, AP State. ^uiunagar ...Respondents Petition under Article 226 af the Constitution of India the circumstances stated be pleased to issue Writ, Order Or Direction praying that in in the affidavit filed therewith, the High Court may more particularly one in the nature of Writ of Mandamus declaring the final 23.02.2021 vide A.O.ZH3704216D42108 issued by the 5th respondent levying the tax rate at 14.5 percent jover the sports goods, contrary to the Entry 60 of Schedule-IV of AP VAT Act, 2005 and by the 3rd respondent dated 03;05.a021 vide CCTs rejecting the stay application assessment order dated the Endorsement issued Ref.No.LII(1)/64/2021 gal, arbitrary, unconstitutional, without contrary to the provisions of AP VAT Act, 1985 and violative of as any authority established under law Act, 2005, Chapter 95 of CentfaT Excise Tariff 5 Article 19(1)(g) and Article 265 of the Constitution of India and consequently set-aside the same. lA NO: 1 OF 2021 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 proceedihgs relating and in pursuance to final assessment order dated 23.02.2Q2i vide A.O.ZH3704210D42108 issued by the 5th respondent and the consequential Endorsement issued by the 3rd respondent dated 03.05.2021 vide CCTs Ref.No.LII(1)/64/2021, pending disposal of the Writ Petition. "- Counsel for the Petitioner: SRI G TUHIN KUMAR Counsel for the Respondents: ADDL ADVOCATE GENERAL WRIT PETITION NO: 20551 OF 2021 II Between: rhlnn its Registered Office at Chennai with one of its Branches at Shop No.45, St Paul's Complex Nirmala Convent Road, Patanfata, Vijayawada, AP - 520 001 Rep by Its Authorized Signatory, Mr. Durga Rao Kallem. ' ' ...Petitioner AND of Aodhra Pradesh, =Rep. by its Principal Secretary Government Commercial Tax .Department, A.P. Secretariat ^ Velagapudi, Amaravathi. Guhtur District. 2. The Chief Commissioner of State Taxes, State of Andhra Pradesh Eedupugallu, Kankipadu IVIahda’- Vijayawada, Krishna District “Vision, Autonagar, V^yawada Krishm'DiLtcf AP."’ Autonagar Circle, Vijayawada, to AP-521 rilrio .Officer/ Assistant Commissioner (ST), Autonagar Circle, Vi/ayawada Krishna District, AP State. "uiunagar 6 ...Respondents Petition under Articie 226 of the Constitution of india the circumstances stated in the affidavit fiied therewith, be pieased to issue, Writ, Order or Direction more particuiariy nature of Writ of Certiorari caliing for the records in reiating to the Revised Show Cause notice dated 25;02,2021 issued by the 5th respondent, the Final Assessment Order for 2016-17 praying that in the High Court may one in the year dated 30.06.2021 and the consequential Urgent notice issued by the 4th respondent dated 29.07.2021 and set-aside the same being illegal, arbitrary, atrocious, contrary to the established law, contrary to the provisions of the CST Act / AP VAT Act and of India. vioiative of Articie 19(1 )(g) and Articie 265 of the Constitution lA NO: 1 OF 2021 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 of all further probeedings relating and in pursuance to the Revised Show Cause notice dated 25.02.2021 issued by the 5th respondent, the Final Assessment Order for 2016-17 year dated consequential Urgent notice issued by the 4th respondent dated 29.07.2021 pending disposal of the Writ Petition in the interest of justice. r 30.06.2021 and the Counsel for the Petitioner: SRI G TUHIN KUMAR Counsel for the Respondents: GP FOR COMMERCIAL TAX The Court made the following comrhon order: 1 RRR,J & BVLNC.J W.P.Nos.7514of2020, 20411, 20429 & 20551 of 2021 APHC010124482020 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3535] / FRIDAY, THE NINTH DAY OF MAY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE B V L N CHAKRAVARTHI W.P.NOs: 7514 of 2020. 20411. 20429 & 20551 of 2021 W.P.No.7514/2020 Between: ...PETITIONER (inall W.Ps) M/s Acme Fitness Pvt Ltd AND ...RESPONDENT(S) (In all W.P.s) The State Of AP and Others Counsel for the Petitioner: 1.G V S Ganesh Counsel for the Petitioner: 1.G. Tuhin Kumar Counsel for the Respondent(S): 1. GP FOR COMMERCIAL TAX (AP) The Court made the following Order: (per Hon’ble Sri Justice R. Raghunandan Rao) Heard Sri G.V.S. Ganesh, learned counsel appearing for the petitioner in W.P.No.7514 of 2020, Sri G. Tuhin Kumar, learned counsel appearing for f I 2 RRR,J & BVLNC.J . W.P.Nos.7514 of 2020 20411. 20429 & 20551 of 2021 learned G.P. for Commercial Tax the petitioner in rest of the writ petitions and appearing for the respondents. 2. The petitioner i under the A.P. Value Added petitioner, was paying tax at the the goods sold by him under Entry-60 petitioner had filed his returns respondent passed the assessments orders IS a dealer in Gym Equipment Tax Act and Central Sales and is registered Tax Act. The rate of 5% on the saie of goods, by classifying of Schedule-IV of the AP VAT Act. The under the Central Sales Tax Act. The 5*^ against the petitioner in relation to various assessment periods in the following manner. S.No Writ Petition No. Assessment Period Impugned Assessment Order A^oyNoT^eeTss^ated^sT^o^ 2019. 1. 7514 of 2020 2015-2016 2 20411 of 2021 2016-2017 A.O.No. ZH370321OD11236 dated 30-03-2021 ^A^O^ZH37042ToD42T08 dated 23-02-2021 A^O^NorZH37072TOD445^ 3 20429 of 2021 01-02-2016 to 31-07-2017 4. 20551 of 2021 2017-2018 3. In all these petitioner was not eligible for the C-Forms and F-forms have applicable to goods, under the State cases, the 5'^ respondent took the view that the concessional rate of 2%, not been filed. as necessary Consequently, the rate of tax Act would be applicable. The petitioner r 3 RRR,J & BVLNC.J W.P.Nos.7514of 2020, 20411, 20429 & 20551 of 2021 contended that the goods would fall under entry 60 of the IVth Schedule, to the A.P.VAT Act, attracting tax at the rate of 5%. The respondent took the view that the goods sold by the petitioner do not fall under Entry-60 of Schedule-lV of the A.P. VAT Act and would have to be treated as unspecified goods under Schedule-V, which would be amenable to tax at the rate of 14.5%. Sri G. Tuhin Kumar, learned counsel for the petitioner would submit that the goods sold by the petitioner, even according to the 5*^ respondent are weight lifting equipment, dumbbells, treadmill,rotators and fit- kit exercisers. Learned counsel would submit that all these goods are related to sporting activity and consequently, the petitioner was entitled to treat the said goods as falling under Entry-60 of Schedule-IV. Learned counsel would contend that the view of the O'*" respondent, that these goods are not associated with any specific sport and consequently cannot be treated as sports goods, is not based on any proper logic. Apart from this, the learned counsel for the petitioner would also rely upon the judgment of the Hon’ble High Court of Uttarakhand at Nainital, in Commercial Tax Revision No.12 of 2013, dated 11.03.2022, in the case ofM/s. Bhatia Sports Company vs. The Commissioner, Commercial Tax, Uttarakhand. The learned Government Pleader would contend that the equipment mentioned above, are general fitness equipment and do not relate to any specific sports. He would submit that the goods in Entry-60 would have 4. 5. 4 RRR,J & BVLNC.J W.P.Nos.7514 of 2020 20411, 20429 & 20551 of 2021 can be treated to to be the goods associated be goods falling under that Entry. Entry-60 of Schedule-IV to A.P. VAT Act, reads Entry-60:- Sports goods excluding With a specific sport before they 6. as follows; epparels and footwear. r. By virtue of G.O.Ms.No .1615, categorization of goods in the A.P. VAT Act had earlier dated 31.08.2013, relied upon HSN the Codes prescribed under the Central Excise Act. HSN Code-9506 included exercise in the category of sports equipment. However, the Government by issue of G.O.Ms.No.140, dated 19.03.2013, had repealed G.O.Ms.No. articles and equipment for general physical 1615 dated 31.08.2013. On account of this repeal, no reliance HSN Codes. can be placed on the classification of goods through 8. In the circumstances, this Court would have the question of whether the above goods would fall Weight lifting equipment, i and would therefore qualify to be treated the interpretation placed by the 5 directly associated with to, de novo, consider within Entry-60. 9. IS connected to the sport of weight lifting as sports goods, even according to respondent that only goods which a sport can be treated as sports goods. are 10. The other goods, such as treadmill, dumbbells, rotators and fit-kit any one specific sport. However, the person has to maintain physical fitness and the exercise kit cannot be associated with fact remains that every sports goods mentioned are used for maintaining such physical fitness. In such 5 RRR,J & BVLNC.J W.P.Nos.7514of 2020, 20411, 20429 & 20551 of 2021 circumstances, the goods mentioned above would also answer the description of sports goods as these goods are needed by sports persons to maintain themselves physically and to achieve the necessary physical fitness to participate in any physical sport. We are fortified in this view by the judgment of the Hon’ble High Court of Uttarakhand at Nainital, which had considered the question of 11. categorization of similar goods. The Division Bench of the Hon’ble High Court i 'ii of Uttarakhand, following the judgment of the Hon’ble High Court of Allahabad, , had held as i 1 in the case of Cosco Industries Ltd., vs. State of U.P. & Ors., follows: “5. Applying this principle to this case, we hold that Entry No. 106 of Schedule 11(B) provides for sports goods excluding apparels and footwear, and it is liable to tax @ 4%. Fitness exercises are also held to be goods relating to sports and games by the aforesaid judgment. The learned Tribunal, however, did not accept the view taken by the Hon’ble High Court of Allahabad only on the ground that HSN Code was not provided in the VAT Act, 2005, which was drawn under the Uttar Pradesh Value Added Tax Act. 6. We are unable to agree with the view taken by the learned Tribunal in view of the fact that the question is whether fitness equipment and other equipment of exercises are sports good, or not. Whether HSN Code was provided, or not, was not the question. ^ 2009 NTN (Vol.40) 6 ,^ J & BVLNC,J Pn4i-i of2020 20411, 20429 & 20551 of 2021 12. In that view of the orders of assessment, back to the Assessing Officer matter, all the writ petitions are allowed and the matters are \ set out above are set aside.The for passing fresh orders remanded after treating the goods -IV to the A.P. VAT 'n question, as goods falling Act. There shall be As a sequel. within Entry-60 of Schedule no order as to costs. pending miscellaneous applications, if any shall stand closed. egistrar //TRUECOPY// To. SECTION OFFICER / / 1. The Principal Secretary to Government State of Andhra Pradesh, A P Guntur District. o . pommercial Tax Department Secretariat, Velagapudi, Amaravathi ' AP-521 No.2, Division, Autonagar, Vijayawada Autonagar Circle, Vijayawada, Deputy Commissioner (CT) Krishna District, A.P. State. ^ Krishnl olswctCommissioner-ll, Officer/ Assistant Circle, Vijayawada Krishna District, 6. One CC to Sri G Tuhin Kumar Advocate [OPUC] 7. One CC to Sri G V S Ganesh'-Advocate [OPUC] [Wn General High Court of Andhra Pradesh. to GP for Commerctal Tax Two CD Copies High Court of Andhra Pradesh. 10. RAM HIGH COURT DATED:09/05/2025 I «tJUN 2025 n ^ . Current Section . ^ ^^£^spatcvv^5^ COMMON ORDER WP.Nos.7514 of 2020, 20411, 20429 & 20551 of 2021 ALLOWING THE WPs WITHOUT COSTS