IN THE HIGH COURT OF ANDHRA PRADESH :: AMARAVATI (Special Original Jurisdiction) TUESDAY, THE TWENTY FIFTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO AND THE HONOURABLE SRI JUSTICE MAHESWARA RAO KUNCHEAM WRIT PETITION NO: 24321 OF 2017 Between: M/s. Pavani Traders, a Proprietorship Concern, Having its office at Door.No. 11-49-84, Sivalayam Street, Vijayawada, Represented by its Sole Proprietor, Akula Anand Kumar, S/o A.MallikarjunaRao, Aged about 55 years, Occ ; Business, R/o Vijayawada. ...PETITIONER AND The State of Andhra Pradesh, Represented by its Principal Secretary, Revenue (CT) Department, Secretariat Building, Velagapudi Village, Amaravathi, Guntur District, Andhra Pradesh. Deputy Commercial Tax Officer, Integrated Check Post, Purushottapuram, Ichchapuram, Vizianagaram Division, Vizianagaram District, Andhra Pradesh. Deputy Commissioner of Commercial Taxes, Vizianagaram Divison, Door No.685 & 686, Siddathanagar, Vizianagaram, Vizianagaram District, Andhra Pradesh - 535001. The Commercial Tax Officer, Indrakeeladri Circle, Vijayawada, Krishna District, Andhra Pradesh. 1. 2. 3. 4. ...RESPONDENTS Petition under Article 226 of the Constitution of India praying that in the circumstancesstated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, order or direction, more particularly. one in the nature of Writ of Mandamus , declaring the action of the Second Respondent in initiating the Proceedings under Section 45 of the A.P. Value Added Tax Act, 2005 including the Notifications dated 22-3-2017 and 19-4-2017 in Form-603, Order of Confiscation dated 28-3-2017 in Form-605 and the Auction Notice dated 6-4-2017 in Form 606 and in illegally collecting Rs.2,85,120/- towards Tax from the Petitioner as illegal, contrary to law and vitiated by malafides, gross violation of principles of natural justice and violative of the provisions of the A.P.Value Added Tax Act, 2005, Central Excise Tariff Act, 1985 and Articles 14, 19(g), 21, 265 and 300-A of the Constitution of India and consequently quash the same and order refund of Rs.2,85,120/- illegally collected from the Petitioner on 21-4- 2017 along with interest at the rate of 24% per annum and for such reliefs. I.A. NO: 1 OF 2017tWPMP. NO: 30111 OF 20171 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 direct the Second Respondent to refund Rs.2,85,120/- illegally collected from the Petitioner on 21-4-2017 pending disposal of the main Writ Petition. Counsel for the Petitioner: SRI M. R. K. CHAKRAVARTHY Counsel for the Respondent Nos.1 to 4: GP FOR COMMERCIAL TAX Counsel for the Respondents: SRI SURIBABU S(SPL SC FOR CT AP) The Court made the following: ORDER 1 RRR,J& MRK,J W.P.No.24321/2017 APHC010444972017 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3508] TUESDAY, THE TWENTY FIFTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE MAHESWARA RAO KUNCHEAM WRIT PETITION NO: 24321/2017 Between: Sole Prop., M/s. Pavani Traders, Vijayawada AND PrI Secretary Ct Dept Amaravathi 3 Others and Others Counsel for the Petitioner: ...PETITIONER ...RESPONDENT(S) 1. M R K CHAKRAVARTHY Counsel for the Respondent(S): 1 .GP FOR COMMERCIAL T/\X (AP) 2.SURIBABU S(SPL SC FOR CT AP) The Court made the followingOrder: (per Hon’ble Sri Justice R. Raghunandan Rao) Heard Sri M.R.K. Chakravarthy, learned counsel appearing for the learned G.P. for Commercial Tax, appearing for the petitioner, and respondents. The petitioner, who is engaged in wholesale and retail business of bins, had been registered as a dealer, under the provisions of the A.P Value 2. RRR,J& MRK.J W.P.No.24321/2017 Added Tax Act, 2005 (for short ‘the Act’). About 180 cartons of biris, which were being transported from Kolkata to Vijayawada, by the dealer, through a transporter, were seized at the integrated check post, Purushothapuram, Ichapuram, Vizianagaram District, and were subsequently confiscated by an order, dated 28.03.2017. As the confiscated biris were sought to be auctioned, the petitioner paidRs.2,85,120/- towards the value of the biris, under and took possession of biris. 3. The petitioner had, thereupon, challenged the proceedings, dated 22.03.2017, 19.04.2017, and the orders dated 28.03.2017, on the ground that the goods seized were biris and not Cigarettes, as claimed by the confiscating authority. protest. A perusal of the orders of seizure and confiscation would show that the goods under transportation were treated as Cigarettes on the ground that tobacco was packed in paper, whereas the content of biri will be absence of tobacco and the biri leaf, which is a forest produce, and powder of biri leaf will be packed in the biri leaf only. The petitioner contends that such a finding is not in accord with the provisions of the Excise Act, 1968, which is the applicable Act for the purpose of classification under the A.P. VAT Act. The petitioner points out to Item Code No.2401.20 and Item Code No.240120.50, in Chapter - XXIV of the Schedule of the Excise Act, wherein tobacco used for manufacture of biri is specifically set out. This would mean that biris containing tobacco would not 4. 5. 3 RRR,J& MRK,J W.P.No.24321/2017 become Cigarettes and would remain biris. The petitioner would also draw the attention of this Court to Item Code No.2403.19.29, wherein handmade paper biri and machine made paper biri, are shown at SI.No.38 of the said entry. The petitioner would contend that these entries also make it clear that a biri need not be only biris manufactured with biri leaves and can also be biris made from paper. 6. In view of the above entries, made under the Excise Act, it appears that, for the purpose of the Excise Act, tobacco contained in paper would also amount to biris. In such a situation, the respondents could not have seized or confiscated the said goods, on the ground that they are not biris and would have to be treated as Cigarettes. 7. Consequently, the writ petition is allowed setting aside the order of seizure and confiscation with a further direction to refund the amounts collected from the petitioner for release of the said goods, which had been confiscated. Such exercise shall be completed within a period of six weeks from the date of receipt of this order. There shall be no order as to costs. As a sequel, pending miscellaneous applications, if any, shall stand closed. . Witness the Hon’ble this Tuesday, Twenty Fifth That Rule Nisi has been made absolute as above Chief Justice Sri Dhiraj Singh Thakur on , Two Thousand and Twenty Five. the day of February Sd/- M SRINIVAS ASSISTANT REGISJRAR SECTf^g^OFFlCER //true copy// To, (CT) Department, State of Andhra Velagapudi Village, Amaravathi, Guntur The Principal Secretary, Revenue Pradesh, Secretariat Building, District, Andhra Pradesh. 1. 2. Deputy Commercial Tax Officer, Integrated Check Post, Purushottapuram, Ichchapuram, Vizianagaram Division, Vizianagaram District, Andhra Pradesh. 3. Deputy Commissioner of Commercial Taxes, VizianagaramDivison, Door No.685 & 686, Siddathanagar, Vizianagaram, Vizianagaram District, Andhra Pradesh - 535001. 4. The Commercial Tax Officer, Indrakeeladri Circle, Vijayawada, Krishna District, Andhra Pradesh. 5. One CC to Sri M. R. K. Chakravarthy, Advocate [OPUC] 6. One CC to Sri Suribabu S(Spl. SC for CT AP) [OPUC] 7. Two CCs to GP for Commercial Tax, High Court of Andhra Pradesh. [OUT] 8. Three CD Copies. ssb HIGH COURT DATED;25/02/2025 ORDER WP.No.24321 of 2017 0 7 MAR 20?5 Current Section ^spatcv^ allowing the w.p. without costs