9911796707
TMI Blog1998 (11) TMI 635X X X X Extracts X X X X X X X X Extracts X X X X ..... the A.P. General Sales Tax Act, 1957 (hereinafter referred as "the APGST Act") and the Central Sales Tax Act, 1956 (hereinafter referred as "the CST Act"). They import unrefined sunflower oil and refined palmolien and sell it within the State of Andhra Pradesh. The contention of the petitioners is that they have been paying sales tax at the rate of 2 per cent under items 24A and 24B of the First Schedule of the APGST Act and under the CST Act. They have been duly filing their returns. They further submit that for the years 1995-96 and 1996-97 the respondent No. I passed final assessment ordered on the same basis. Copies of the assessments in case of B. Arunkumar Trading Private Limited have been annexed with the petition. It is further stated that vegetable oils are an essential commodity and are used by every section of the society and it has been the policy of the Government to levy tax on such goods at minimum rates and it is evidenced according to the petitioners by G.O. Ms. No. 401, dated August 16, 1995 and G.O. Ms. No. 415, dated May 17, 1997. These G.Os. grant rebate of tax on sales of refined oils derived from tax suffered unrefined oil. It is further stated that the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he point of first sale in the Sate 2 paise in the rupee. 16-8-1995 24B Vegetable oil (refined) obtained from non-refined oil mentioned in item 24A other than rice bran oil (1205). Do. Do. 16-8-1995 24C Rice bran oil (1206) Do. Do. 16-8-1995 24D Coconut oil (1207) Do. 10 paise in the rupee. 16-8-1995 5. The assessments were being made and in certain cases the imported refined palmolien oil and unrefined sunflower oil was taxed at the rate of 2 per cent and in some cases it was taxed under Seventh Schedule at the rate of 10 per cent as some of the assessing authorities thought that the case of the petitioners was not covered either under entries 24A or 24B. Consequently, Government of Andhra Pradesh issued an order on September 16, 1997 which is reproduced below: "Government of Andhra Pradesh, Revenue (CT-11) Department No. 27740/CT-11(1)/97-2 Dated: 16-9-1997 Sub: APGST Act, 1957---Sale of imported vegetable oils-Applicable rate of tax-Regarding. Ref: From the CCT., AP., I Hyd. Letter No. A1(3)/1924/94 dated 9-5-1996. ----------------------The attention of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r cent under Seventh Schedule. In view of the above clarification, all imported oils from outside the country or from outside State (such as GN oil, palm oil, gingerly oil., safflower oil, sunflower oil, soyabean oil, mustard oil, etc.) when refined in the State are liable to tax at 10 per cent under Seventh Schedule. In view of the above, the Deputy Commissioners (C.T.), are requested to furnish the full details of the refineries which are importing vegetable oils in the following pro forma: SI.No Name of refinery Nature of refined oil GTO ETO NTO Tax paid Rate at which paid (1) (2) (3) (4) (5) (6) (7) (8) Further, the Deputy Commissioners (C.T.) are also requested to examine the possibility of revising all the assessments where the assessees have paid 2 per cent instead of 10. per cent on imported oil from other State/other countries. Sd/- For Commissioner of Commercial Taxes To All Deputy Commissioners (C.T.)." 7.. Two prayers have been made, one that the Government order dated September 16, 1997 and the Commissioner's order dated November 10, 1997 be q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f its appellate functions." 10.. From bare reading of the above two provisions of the Act it becomes clear that the Government has no power whatsoever to interpret the statute in a vacuum and ask the assessing authorities to make assessments in accordance with the interpretations placed by the Government through a Government order on a statute. Assessing authorities, appellate authorities and the revisional authorities under the Act are performing quasi-judicial functions and it is in each and every case that these authorities are expected to pass objective orders while interpreting the provisions on their own. One can understand if an order is passed by the assessing authority and it is subjected to an appeal or revision and the Commissioner or the Government passes an order while exercising those powers in a specific matter. In such a situation, such authority may place an interpretation on a statute different from the interpretation placed on it by the assessing authority. But, in our view, the Government order which has been issued has been issued without any power whatsoever under the Act. Therefore, the order dated September 16, 1997 passed by the Government is ultra vires ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r cent from August 16, 1995. There is no confusion and as such there is no difficulty in making out that all nonrefined vegetable oils are taxable at 2 per cent, The only exceptions are rice bran oil and coconut oil. Since the petitioners are dealing with refined oil, therefore they are not subject to item 24A. Item 24B lays down that all refined vegetable oils obtained from non-refined oil mentioned in item 24A other than rice bran oil are subject to tax at the rate of 2 per cent. So, there is a condition laid down that, only those refined vegetable oils are taxable at 2 per cent which have suffered tax in the non-refined capacity under item 24A. Those refined vegetable oils which have not suffered tax under item 24A have been excluded from the application of item 24B. The learned counsel for the petitioner wants this Court to interpret item 24B in such a way that all refined oils including those oils which have not suffered tax under item 24A are taxable at 2 per cent. Since 24B in our view is clear and unambiguous therefore we are not able to agree with the submission of the petitioners. He has placed reliance on number of authorities which are produced by way of a separate book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact want amendment in item 24B that is exactly what the Commissioner had recommended in his letter dated May 9, 1996 to which a reference has already been made. Even if one goes by the letter of the Commissioner of Commercial Taxes on which reliance has been placed by the learned counsel for the petitioners, even then one comes to the conclusion that, only interpretation possible on items 24A and 24B is that, imported refined oil is taxable at 10 per cent and not at concessional rate of 2 per cent. The Commissioner was also of the same view, therefore he had suggested deletion of words "obtained from non-refined oil mentioned in item 24A" in entry 24B which would in effect mean that the Commissioner had also found it impossible to levy tax at 2 per cent in view of item 24B as it exists, so he had recommended an amendment to item 24B. Clearly this Court will not be within its power to direct amendment. 16.. For the reasons given above, we are not inclined to accept the contentions of the learned counsel for the petitioners. Unless and until an amendment is carried to item 24B no relief can be granted to the petitioners and the amendment of the statute is not within the powers of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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