2015 (11) TMI 871 - SC - VAT and Sales Tax

Review petition - Held that - State of Andhra Pradesh is now bifurcated into the State of Telengana and State of Andhra Pradesh from 02.06.2014. Assessment orders were passed by the assessing authority of the State of Andhra Pradesh. Now the demand is created by authorities by the State of Telengana. If the petitioner, for any reason, fails in Writ Petition No.31525 of 2013 that is pending before the High Court, they would not be in a position to file an appeal against the assessment order(s) either in the State of Andhra Pradesh or in the State of Telengana. - we set aside the impugned judgment and order passed by the High Court - We reserve liberty to the concerned state assessing authority to complete the assessments for the aforesaid period after disposal of Writ Petition 31525 of 2013. - Decided in favour of appellant.

Summary

Issues:
1. Jurisdictional conflict between State of Andhra Pradesh and State of Telengana regarding assessment orders.
2. Request to set aside assessment orders pending disposal of Writ Petition.
3. Interpretation of relevant legal provisions during disposal of Writ Petition.

Analysis:
1. The petitioner's counsel raised concerns about the bifurcation of the State of Andhra Pradesh into Telengana and Andhra Pradesh, leading to a jurisdictional issue regarding assessment orders. The petitioner requested to set aside the assessment orders to allow the assessing authority of the concerned State to pass appropriate orders based on the outcome of the pending Writ Petition No.31525 of 2013.

2. The State counsels for Andhra Pradesh and Telengana supported the earlier order directing the High Court to dispose of the pending Writ Petition without setting aside the assessment orders. However, the Court, after careful consideration, accepted the petitioner's submission and set aside the impugned judgment and assessment orders for the years 2006-2007 to 2012-2013. The Court reserved liberty for the respective State assessing authorities to complete assessments after the disposal of Writ Petition No.31525 of 2013.

3. Additionally, the Court requested the High Court to consider Clause III(i) of Schedule V of the Andhra Pradesh Infrastructure Development Enabling Act, 2001, and the Andhra Pradesh Re-Organisation Act, 2014 while disposing of the Writ Petition. The Court also reminded the authorities to refer to previous judgments, specifically mentioning the case of M/s. Vadilal Chemicals Ltd. vs. State of A.P. & Ors. (2005) 6 SCC 292, for interpreting covenants in agreements between parties during the assessment process.

4. Ultimately, the Review Petitions were disposed of accordingly, emphasizing the importance of adhering to legal provisions and previous judicial interpretations while resolving jurisdictional conflicts and assessing tax liabilities.