2009 (1) TMI 812 - HC - VAT and Sales Tax

Summary

The High Court of Andhra Pradesh, in 2009, addressed a case where a petitioner, a service provider paying service tax to the Union of India, claimed exemption from paying tax under the Andhra Pradesh Value Added Tax Act, 2005. The petitioner argued that, as per the law established by the Supreme Court in Bharat Sanchar Nigam Ltd. v. Union of India, they were not liable to pay tax under the Act. The government pleader countered by stating that similar cases were already admitted in court and that one-third of the tax should be paid by the petitioner to stay recovery proceedings, citing previous court orders. The court noted the arguments and the fact that similar cases were to be finally heard on February 16, 2009. The court acknowledged that interim orders were not precedents but decided to maintain uniformity and consistency in granting interim relief. Consequently, the court directed an ad interim stay on the recovery of the disputed tax amount, provided the petitioner paid one-third of the tax within eight weeks, with any prior payments to be credited.