Registered Office d v. The State of An

Judgment

2. The State of Andhra Pradesh, efep. by its Principal Secretary to Government Commercial Tax Department, AP Secretariat Velagapudi, Amaravathi, Guntur District.. The Commissioner of Commercial Taxes, State of Andhra Pradesh Eedupugallu, Kankipadu Mandal, Vijayawada, Krishna District, AP - 521 144

3. The Deputy Commissioner, (CT) 2 Division Autonagar, Viiayawada Krishna District, A.P.

5. The Commercial Tax Officer, Autonagar Circle, Vijayawada Krishna District, A.P. The Assistant Commercial Tax Officer -, IV Autonagar Circle Vijayawada Krishna District, A.P. Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court be pleased to ...Respondents 2 4 a) Call for the records culminating in the in A.O.No.166188, dated ^^/08/2019 including the consequential demand notices dated 31/08/2019, 09 07/03/2020 issued by the Respondent No. 4 viz., the fercial Tax Officer, Autonagar Circle, Vijayawada

4.' b) quash the same by issuance of a Writ, more particularly one in the nature of a Writ of Certiorari or any other appropriate Writ, Order Direction, while declaring that the same is wholly without jurisdiction, and pass such further or other orders as this Hon'ble Court may deem fit and proper in the circumstances of the case, while awarding of costs of these proceedings and render justice. lA NO: 2 OF 2020

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 suspend the operation of the impugned order in A.O.No.166188, the consequential demand notices dated dated 31/08/2019 including 31/08/2019, 09/01/2020 & 07/03/2020 issued by the CTO, Autonagar Circle, Vijayawada, pending disposal of the Writ Petition. Counsel for the Petitioner: SRI G V S GANESH Counsel for the Respondents: GP FOR COMMERCIAL TAX WRIT PETITION NO: 20411 OF 2071 Between: Registered Office d Chennai with one of its Branches at Shop No.45, St.Paul's Complex Nirmala Convent Road, Patamata, Vijayawada, AP - 520 001 Rep by ^ Its Authorized Signatory Mr. Durga Rao Kallem. ’ -■•■I AND ...Petitioner

1. The State of Andhra Pradesh, Rep. by its Principal Secretary to Government Commercial Tax Department, A.P. Secretariat Velagapudi, Amaravathi, Guntur District. 3

2. The Chief Commissioner of State Taxes, State of Andhra Pradesh Eedupugallu, Kankipadu Mandal, Vijayawada, Krishna District, AP - 521 144.

3. The Deputy Commissioner (CT), , No.2 Division, Autonagar, Vijayawada Krishna District, AP State.

4. The Deputy Assistant Commissioner-ll, Autonagar Circle, Vijayawada, Krishna District, AP.

5. The Commercial Tax Officer, Assistant Commissioner (ST), Autonagar Circle, Vijayawada Krishna District, AP State. ...Respondents 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 to prayed to issue. Writ, Order or Direction more particularly one in the nature of Writ of Certiorari calling for the records in relating to the Revised Show Cause notice dated respondent, 30.03.2021 Urgent notice and the consequential respondent dated 28.07.2021; and' set-aside the arbitrary, provisions of the CST Act / AP VAT Act and violative of Article 19(1)(g) and Article 265 of the Constitution of India.

25.02.2021 Final Assessment Order the established law issued 2016-17 issued by the contrary to same being atrocious, contrary to illegal, 4th 5th lA NO: 1 OF 2021 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in supporf of the petition, the High Court may be pleased to stay of all further proceedings relating and in pursuance to the Revised Show Cause notice »dated respondent, 30.03.2021 4th respondent dated 28.07.2021 pending disposal of the Writ Petition in the interest of justice. and the consequential issued for 2016-17 issued Final Assessment Order Urgent notice

25.02.2021 5th Counsel for the Petitioner: SRI G TUHIN KUMAR Counsel for the Respondents: ADDL ADVOCATE general II WRIT PETITION NO: 20429 np oriOA / Between: itsTulhoriSaSign^ato^MSfga R^arKate^ AND ...Petitioner Rep. by its Principal Secretary Government Commercial Tax Department, A.P. Secretariat ^ Velagapudi, Amaravathi, Guntiir District.

2. The Chief Commissioner of State Taxes, State of Andhra Pradesh Eedupugallu, Kankipadu Mahd'al, Vijayawada, Krishna District, AP - 521 smte^rfIt VijaW'l^sl^a KrifhnfD!s^ricrA"p siate"^ ril-Ho Circle, Vijayawada Krishna District, AP State. '-egal, O/o Commissioner of ^upugallu, Kankipadu Mandal Vijayawada .Officer/ Assistant Commissioner (ST), Autonaqar ^uiunagar ...Respondents Petition under Article 226 af the Constitution of India the circumstances stated praying that in in the affidavit filed therewith, the High Court may more particularly one in the be pleased to issue Writ, Order Or Direction nature of Writ of Mandamus declaring the final 23.02.2021 vide A.O.ZH3704216D42108 issued by the 5th respondent levying the tax rate at 14.5 percent jover the sports goods, contrary to the Entry 60 of Schedule-IV of AP VAT Act, 2005 and the Endorsement issued by the 3rd respondent dated 03;05.a021 vide CCTs rejecting the stay application Ref.No.LII(1)/64/2021 gal, arbitrary, unconstitutional, without assessment order dated any authority established under law Act, 2005, Chapter 95 of CentfaT Excise Tariff contrary to the provisions of AP VAT Act, 1985 and violative of 5 Article 19(1)(g) Article 265 of Constitution India consequently set-aside the same. lA NO: 1 OF 2021 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 stay all further proceedihgs relating and in pursuance to final assessment order dated 23.02.2Q2i vide A.O.ZH3704210D42108 issued by the 5th respondent and the consequential Endorsement issued by the 3rd respondent dated 03.05.2021 vide CCTs Ref.No.LII(1)/64/2021, pending disposal of the Writ Petition. "- Counsel for the Petitioner: SRI G TUHIN KUMAR Counsel for the Respondents: ADDL ADVOCATE GENERAL II WRIT PETITION NO: 20551 OF 2021 Between: its Registered Office at Chennai with one of its Branches at Shop No.45, St Paul's Complex Nirmala Convent Road, Patanfata, Vijayawada, AP - 520 001 Rep by ' Its Authorized Signatory, Mr. Durga Rao Kallem. ' AND ...Petitioner of Aodhra Pradesh, =Rep. by its Principal Secretary Government Commercial Tax .Department, A.P. Secretariat ^ Velagapudi, Amaravathi. Guhtur District.

2. The Chief Commissioner of State Taxes, State of Andhra Pradesh Eedupugallu, Kankipadu IVIahda’- Vijayawada, Krishna District AP-521 “Vision, Autonagar, V^yawada Krishm'DiLtcf AP."’ Autonagar Circle, Vijayawada, rilrio Circle, Vi/ayawada Krishna District, AP State. .Officer/ Assistant Commissioner (ST), Autonagar "uiunagar 6 Petition under Articie 226 of the Constitution of india ...Respondents praying that in the High Court may the circumstances stated in the affidavit fiied therewith, be pieased to issue, Writ, Order or Direction more particuiariy one in the nature of Writ of Certiorari caliing for the records in reiating to the Revised Show Cause notice dated 25;02,2021 issued by the 5th respondent, the Final Assessment Order for 2016-17 year dated 30.06.2021 and the consequential Urgent notice issued by the 4th respondent dated 29.07.2021 and set-aside the same being illegal, arbitrary, atrocious, contrary to the established law, contrary to the provisions of the CST Act / AP VAT Act and vioiative of Articie 19(1 )(g) and Articie 265 of the Constitution of India. lA NO: 1 OF 2021 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 stay of all further probeedings relating and in pursuance to the Revised Show Cause notice Final Assessment respondent, and the 30.06.2021 4th respondent dated 29.07.2021 pending disposal of the Writ Petition in the interest of justice.

25.02.2021 Order for Urgent notice issued 2016-17 issued by the consequential 5th r Counsel for the Petitioner: SRI G TUHIN KUMAR Counsel for the Respondents: GP FOR COMMERCIAL TAX The Court made the following comrhon order: 1 RRR,J & BVLNC.J W.P.Nos.7514of2020, 20411, 20429 & 20551 of 2021 APHC010124482020 IN THE HIGH COURT OF ANDHRA PRADESH / AT AMARAVATI [3535] (Special Original Jurisdiction) FRIDAY, THE NINTH DAY OF MAY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE R RAGHUNANDAN RAO THE HONOURABLE SRI JUSTICE B V L N CHAKRAVARTHI W.P.NOs: 7514 of 2020. 20411. 20429 & 20551 of 2021 W.P.No.7514/2020 Between: M/s Acme Fitness Pvt Ltd The State Of AP and Others Counsel for the Petitioner:

1.G V S Ganesh Counsel for the Petitioner:

1.G. Tuhin Kumar AND ...PETITIONER (inall W.Ps) ...RESPONDENT(S) (In all W.P.s) Counsel for the Respondent(S):

1. GP FOR COMMERCIAL TAX (AP) The Court made the following Order: (per Hon’ble Sri Justice R. Raghunandan Rao) Heard Sri G.V.S. Ganesh, learned counsel appearing for the petitioner in W.P.No.7514 of 2020, Sri G. Tuhin Kumar, learned counsel appearing for f I 2 the petitioner in rest of the writ petitions and appearing for the respondents. RRR,J & BVLNC.J . W.P.Nos.7514 of 2020 20411. 20429 & 20551 of 2021 learned G.P. for Commercial Tax

2. The petitioner i IS a dealer in Gym Equipment and is registered under the A.P. Value Added petitioner, was paying tax at the the goods sold by him under Entry-60 Tax Act and Central Sales Tax Act. The rate of 5% on the saie of goods, by classifying of Schedule-IV of the AP VAT Act. The petitioner had filed his returns under the Central Sales Tax Act. The 5*^ respondent passed the assessments orders against the petitioner in relation to various assessment periods in the following manner. S.No Writ Petition No. Assessment Period Impugned Assessment Order

1. 7514 of 2020 2015-2016 2 3 20411 of 2021 2016-2017 20429 of 2021 01-02-2016 to

4. 20551 of 2021 31-07-2017 2017-2018 A^oyNoT^eeTss^ated^sT^o^

2019. A.O.No. ZH370321OD11236 dated 30-03-2021 ^A^O^ZH37042ToD42T08 dated 23-02-2021 A^O^NorZH37072TOD445^

3. In all these cases, the 5'^ respondent took the view that the petitioner was not eligible for the C-Forms and F-forms have concessional rate of 2%, as necessary not been filed. Consequently, the rate of tax applicable to goods, under the State Act would be applicable. The petitioner r 3 RRR,J & BVLNC.J W.P.Nos.7514of 2020, 20411, 20429 & 20551 of 2021 contended that the goods would fall under entry 60 of the IVth Schedule, to the A.P.VAT Act, attracting tax at the rate of 5%. The respondent took the view that the goods sold by the petitioner do not fall under Entry-60 of Schedule-lV of the A.P. VAT Act and would have to be treated as unspecified goods under Schedule-V, which would be amenable to tax at the rate of

14.5%.

4. Sri G. Tuhin Kumar, learned counsel for the petitioner would submit that the goods sold by the petitioner, even according to the 5*^ respondent are weight lifting equipment, dumbbells, treadmill,rotators and fit- kit exercisers. Learned counsel would submit that all these goods are related to sporting activity and consequently, the petitioner was entitled to treat the said goods as falling under Entry-60 of Schedule-IV. Learned counsel would contend that the view of the O'*" respondent, that these goods are not associated with any specific sport and consequently cannot be treated as sports goods, is not based on any proper logic. Apart from this, the learned counsel for the petitioner would also rely upon the judgment of the Hon’ble High Court of Uttarakhand at Nainital, in Commercial Tax Revision No.12 of 2013, dated 11.03.2022, in the case ofM/s. Bhatia Sports Company vs. The Commissioner, Commercial Tax, Uttarakhand.

5. The learned Government Pleader would contend equipment mentioned above, are general fitness equipment and do not relate to any specific sports. He would submit that the goods in Entry-60 would have 4 RRR,J & BVLNC.J W.P.Nos.7514 of 2020 20411, 20429 & 20551 of 2021 With a specific sport before they can be treated to to be the goods associated be goods falling under that Entry.

6. Entry-60 of Schedule-IV to A.P. VAT Act, reads Entry-60:- Sports goods excluding epparels and footwear. as follows; r. By virtue G.O.Ms.No .1615,

31.08.2013, relied upon HSN categorization of goods in the A.P. VAT Act had earlier Codes prescribed under the Central Excise Act. HSN Code-9506 included articles and equipment for general physical exercise in the category of sports equipment. However, the Government by issue of G.O.Ms.No.140, dated 19.03.2013, had repealed G.O.Ms.No. 1615 dated 31.08.2013. On account of can be placed on the classification of goods through this repeal, no reliance HSN Codes.

8. In the circumstances, this Court would have to, de novo, consider the question of whether the above goods would fall within Entry-60.

9. Weight lifting equipment, i IS connected to the sport of weight lifting and would therefore qualify to be treated as sports goods, even according to the interpretation placed by the 5 respondent that only goods which directly associated with a sport can be treated as sports goods.

10. The other goods, such as treadmill, dumbbells, rotators and fit-kit exercise kit cannot be associated with any one specific sport. However, the fact remains that every sports person has to maintain physical fitness and the goods mentioned are used for maintaining such physical fitness. In such 5 RRR,J & BVLNC.J W.P.Nos.7514of 2020, 20411, 20429 & 20551 of 2021 circumstances, the goods mentioned above would also answer the description of sports goods as these goods are needed by sports persons to maintain themselves physically and to achieve the necessary physical fitness to participate in any physical sport.

11. We are fortified in this view by the judgment of the Hon’ble High Court of Uttarakhand at Nainital, which had considered the question of categorization of similar goods. The Division Bench of the Hon’ble High Court of Uttarakhand, following the judgment of the Hon’ble High Court of Allahabad, in the case of Cosco Industries Ltd., vs. State of U.P. & Ors., 1 , had held as i 'ii i follows: “5. Applying this principle to this case, we hold that Entry No. 106 of Schedule 11(B) provides sports goods excluding apparels and footwear, and it is liable to tax @ 4%. Fitness exercises are also held to be goods relating to sports and games by the aforesaid judgment. The learned Tribunal, however, did not accept the view taken by the Hon’ble High Court of Allahabad only on the ground that HSN Code was not provided in the VAT Act, 2005, which was drawn under the Uttar Pradesh Value Added Tax Act.

6. We are unable to agree with the view taken by the learned Tribunal in view of the fact that the question is whether fitness equipment and other equipment of exercises are sports good, or not. Whether HSN Code was provided, or not, was not the question. ^ 2009 NTN (Vol.40) 6 ,^ J & BVLNC,J Pn4i-i of2020 20411, 20429 & 20551 of 2021

12. In that view of the matter, all the writ petitions orders of assessment, set out above back to the Assessing Officer 'n question, as goods falling Act. There shall be no order as to costs. are set aside.The matters are remanded for passing fresh orders after treating the goods within Entry-60 of Schedule -IV to the A.P. VAT are allowed and the \ pending miscellaneous applications, if any shall stand //TRUECOPY// egistrar SECTION OFFICER / /

1. The Principal Secretary to Government State of Andhra Pradesh, A P Guntur District. . o pommercial Tax Department Secretariat, Velagapudi, Amaravathi As a sequel. closed. To. Deputy Commissioner (CT) ^ Krishna District, A.P. State. Krishnl olswctCommissioner-ll, No.2, Division, Autonagar, Vijayawada Autonagar Circle, Vijayawada, AP-521 Circle, Vijayawada Krishna District, Officer/ Assistant

6. One CC to Sri G Tuhin Kumar Advocate [OPUC] 7. One CC to Sri G V S Ganesh'-Advocate [OPUC] [Wn General High Court of Andhra Pradesh. to GP for Commerctal Tax High Court of Andhra Pradesh.

10. RAM Two CD Copies HIGH COURT DATED:09/05/2025 COMMON ORDER WP.Nos.7514 of 2020, 20411, 20429 & 20551 of 2021 ALLOWING THE WPs WITHOUT COSTS I n «tJUN 2025 ^ . Current Section . ^ ^^£^spatcvv^5^