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TMI Blog2025 (2) TMI 1014X X X X Extracts X X X X X X X X Extracts X X X X ..... na and the State of Andhra Pradesh in M/s. Larsen and Toubro and Others vs. State of Andhra Pradesh [2006 (10) TMI 377 - ANDHRA PRADESH HIGH COURT]. However, Section 7A, which was introduced subsequently, on 24.09.2008, states that exemption of tax on sale of goods within the Special Economic Zone will be available on sale of any goods to persons who have been authorized to establish unit in the SEZ or authorized to develop operate and maintain a SEZ. The further condition is that only such sales of goods made for the purposes, set out in Section 7A would be eligible for such exemption. In the present case, entry 59A states that all goods sold by the persons mentioned in entry 59A, would be eligible for exemption. Section 7A also provides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SPL SC FOR CT AP) ORDER PER (HON'BLE SRI JUSTICE R. RAGHUNANDAN RAO) The petitioner was a dealer, registered under the A.P. VAT Act. 2. In the year 2010-2011, one M/s. Abhijeet Ferro-tech Limited established a unit in the Visakhapatnam Special Economic Zone (SEZ). For the purposes of setting up the said plant, an EPC contractor named M/s. Abjhijeet Projects Limited was awarded the contract of setting up the unit. M/s. Abjhijeet Projects Limited in turn sub-contracted the work, on a back to back basis, to the petitioner herein, by way of a letter of intent, dated 04.03.2010. 3. The contention of the petitioner was that, by virtue of Entry 59-A in the 1st schedule to the AP VAT Act, 2005, the petitioner, as a sub-contractor of M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... area was included and taxed. Apart from this, the authorities also levied a penalty on the petitioner. Aggrieved by the said order of the Tribunal as well as the orders of the assessment and penalties, the petitioner had approached this Court, by way of various writ petitions. The details of these petitions are as follows: Sl.No. Writ Petition No. Assessment/Penalty Orders challenged in the Writ Petition Appellate Orders challenged in the Writ Petition 01. 16649/2011 A.R.COM/2/2010 Dated 16.03.2011 T.A.No.66 of 2011 dated 16.05.2011 02. 16514/2014 A.A.O. No. 37549 Dated 29.04.2014 03. 1415/ 2016 A.O. No. 44372 Dated 04.12.2015 04. 29384/2016 A.O. No. 26393 Dated 24.06.2016 05. 44149/2016 A.O. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5'. 6. Entry 59A exempts all goods sold within the SEZ area by an operator, developer, a co-developer or contractor or by any of the above. The term contractor has now been interpreted to include sub7 contractors, by virtue of the Judgment of the erstwhile High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh in M/s. Larsen and Toubro and Others vs. State of Andhra Pradesh (2006) 148 STC 616. 7. However, Section 7A, which was introduced subsequently, on 24.09.2008, states that exemption of tax on sale of goods within the Special Economic Zone will be available on sale of any goods to persons who have been authorized to establish unit in the SEZ or authorized to develop operate and maintai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns cannot operate at the same time. At best, Section 7A is a more restrictive provision of law whereas item 59A is a more expansive exemption. It may also be noted Entry 59A was not deleted from the Act, when Section 7A was introduced, and came to be deleted much later. This is also a factor, which has to be taken into account while trying to harmonize both the provisions of law. 12. In the circumstances, we do not find any reason to hold that there is a conflict between Section 7A of AP VAT Act and Entry 59A of the 1st Schedule to the AP VAT Act. In the absence of a conflict, the non-obstante clause does not come into operation and consequently the petitioner was entitled to the benefit of Entry 59-A of the 1st schedule which exempts all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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