APHC010035182008 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3529] MONDAY,THE NINTH DAY OF FEBRUARY TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION NO: 22579/2008 Between: 1. M/S. RANGANATHA TRADERS,, SHOP NO. 11, MARKET YARD STREET, BELLARY ROAD, KURNOOL DISTRICT, REP BY ITS MANAGING PARTNER, CH. PEDDA VENKATESWARLU ...PETITIONER AND 1. THE ASSISTANT COMMISSIONER CT INT, Large Tax Payers Unit, Behind Central Plaza, Near Ayyappa Swamy Temple, Kurnool - 518 002. ...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 toto issue a writ order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the respondents in levying tax on the turnover relating to seeds for sowing purpose sold to Andhra Pradesh State Seeds Development Corporation as contrary to the amended Entry 44 of the First Schedule to the AP Value Added Tax, 2005, which was amended with retrospective effect from 1-4-2005, and Memo No. 39556/CT.II(1)/2007-2, dated 22-8-2007, and consequently set aside the impugned order of "Assessment of Value Added Tax" in Form VAT 305, dated 06-7-2007 in TIN No. 28300275923, for the tax period 01-4-2006 to 28-2-2007 and pass 2 RRR,J & TCDS,J W.P.No.22579 of 2008 IA NO: 1 OF 2008(WPMP 29412 OF 2008 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 grant stay of collection of the disputed tax of Rs. 9,32,761/- for the tax period 01-4-2006 to 28-2-2007, pending disposal of the writ petition and pass IA NO: 1 OF 2017(WPMP 146371 OF 2017 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 Counsel for the Petitioner: 1. K V RAGHU VEER Counsel for the Respondent: 1. GP FOR COMMERCIAL TAX 2. SHAIK JEELANI BASHA(SPL SC FOR CT AP) 3 RRR,J & TCDS,J W.P.No.22579 of 2008 The Court made the following Order: (per Hon’ble Sri Justice R. Raghunandan Rao) The petitioner is in the business of sale of seeds including labeled seeds. The assessment of the petitioner, under the Andhra Pradesh Value Added Tax Act, 2005 (herein referred to as ‘the Act’), for the tax period 01.04.2006 to 28.02.2007, was initiated by the Assessing Authority, by way of a show-cause notice, dated 24.05.2007, calling upon the petitioner to show cause why the sale of seeds to M/s. Andhra Pradesh State Seeds Development Corporation should not be brought to tax, under the provisions of the Act. 2. The petitioner had filed objections, stating that, the seeds, which were sold by the petitioner to M/s. A.P.S.S.D.C., are exempted from tax, by virtue of their inclusion in entry 44 of the first schedule with effect from 01.04.2005. 3. The Assessing Authority, after receipt of these objections, had dropped the proposal to levy tax on labeled seeds. However, the Assessing Authority, in his order of assessment, dated 06.07.2007, had held that, certain taxable goods, enumerated under the IV schedule of the Act, has been used as inputs for sale of the exempted goods, enumerated in the I schedule of the Act and such purchases are liable to tax, on that basis. The Assessing Authority had also held that, an amount of Rs.9,32,761/- would become liable for payment. 4. Aggrieved by this Order, dated 06.07.2007, the petitioner has approached this Court, by way of the present Writ Petition. 4 RRR,J & TCDS,J W.P.No.22579 of 2008 5. The primary contention of the petitioner is that, the show-cause notice was issued only, in relation to bringing the sale of labeled seeds to tax and the objections were filed only, in this regard. In such circumstances, the Assessing Authority could not have raised an issue of tax, on purchases on the inputs. It is also contended that, this is a clear case of violation of principles of natural justice in as much as the assessment order was passed on an issue, which had not been put to the petitioner. 6. A perusal of the said order would show that, this is an issue raised and held against the petitioner without an opportunity being given to the petitioner, in this regard. 7. The learned counsel for the petitioner would also contend that, the Assessing Authority had simply taken into account all the output tax of the petitioner, for the said period, and held that, the entire output tax relates to purchase on the inputs used in the sale of exempted goods, without any material and without any details of the inputs that are said to have been used for the sale of exempted goods. 8. This contention also merits acceptance as the order of assessment is devoid of any such details. 9. In these circumstances, the order, dated 06.07.2007, is set aside and the matter is remanded back to the Assessing Authority to pass orders, after issuing a show-cause notice, detailing the views of the Assessing Authority 5 RRR,J & TCDS,J W.P.No.22579 of 2008 and after giving an opportunity of hearing to the petitioner to reply to the said show-cause notice. 10. Accordingly, this Writ Petition is disposed of. There shall be no order as to costs. As a sequel, pending miscellaneous applications, if any, shall stand closed. ________________________ R. RAGHUNANDAN RAO, J _________________ T.C.D. SEKHAR, J Date:09.02.2026 KPV 6 RRR,J & TCDS,J W.P.No.22579 of 2008 128 THE HON’BLE SRI JUSTICE R. RAGHUNANDAN RAO AND THE HON'BLE SRI JUSTICE T.C.D.SEKHAR WRIT PETITION No.22579 of 2008 (per Hon’ble Sri Justice R. Raghunandan Rao) 09.02.2026 KPV