The High Court · 2025

Counsel for the Petitioner: Mr.Swaroop Oorilla, Special Government Pleader for Tax Counsel for the Respondent: None Appeared The Court made the following: ORDER i/ / / r. IN THE HIGH COURT FOR THE STATE OF I'EI ANGANA AT HYDERABAD THE HONOURABLE SRT JUSTICE P.SAM TOSHY AND THE HONOURABLE SRI JUSTICE SUDDALA CHALAPATHI RAO Tax Revision Case No.206 of 20t0 Dated: 10.12.2025 Between: The State ofAndhra Pradesh, Rep. by the State Representative belore STAT, D.No.5-4-404 to 408, Nampally, Andhra Pradesh, Hyderabad. AND M/s.Maheshwari Par Boiled Modern Rice Mitl, Kampasagar, Nalgonda District. . Petitioner Respondent ORDER: (per Hon'bte Sri JLrsticc P.Sllltt Kosht,) Mr.Swaroop Oorilla, learned Speciat (iovenr r cnt Pleader for State Tax, appearing for the petitioner

2. The instant is the Tax Revision Case tiled by tl : pc{itioner- State Government under Section 22 of Andhra [)rlr:sh Ceneral Sales Tax Ac| 1957 (for short "the CS't' Act"). -lh,: urtlcr under challenge is that oi' the Tribunal date<l (ll Xr.2009 in T.A.No. 130012024 which has panly allowed the apl ral so as to 2 inclusion of Rural Development Cess being treated as same component for the purpose of levying of tax.

3. Vide the impugned order, rhe Tribunal had partly allowed the appeal preferred by the respondents_Assessee and partly dismissed the same. There were two questions of law which stood decided by the Tribunal. 4. The present is the Tax Revision Case which had been filed assailing the only question o[ raw which stood decided against the Revenue i.e., question No. l. The question No.l decided was whether collection of sales Tax lc'ied on Rural Development Cess component is enforceable in rernrs ol'C.O.Ms.Nos.95l and 952, dated 10.09.2003.

5. For better understanding of rhe question raised by the State Govemment in the present -l'ax Revision Case, it would be more appropriate if we refer to G.O.Ms.Nos.95l and 952 which for ready reference reproduced hereundcr: .. APGST Act. 1957-tixcnrption from levy of sales tax on the Rural Developntent C-ess component_Notification issued. (G.O.Ms.No.95l, Ilcverrue Dt.r0.09.2003) (CT-lI) Department, 3 NOTIFICATION ln exercise of the powers conferred by sub secti, ,ir ( I ) of Section 9 of the Andhra Pradesh General Sales l'iL; Act, 1957 (Act VI of 1957), the Govemor of Andhra Frrdesh hereby grants exemption from the levy of sales tax ( n the Rural Development Cess component of the purchasc value of Paddy by the Rice Millers, under the said Act. N.S.Harih rran, Principal Secretary to (l rvernment. (a) G.O.Ms.No.952, Revenue (CT-ll) )ept.,, Dt.10.9.2003. "A.P.Rural Development Cess Act, 1996- Waiver of demand relating to levy of lural Development Cess on actual purchase rrices paid by millers over and above minimum srr )port price of paddy and also the outstanding ar rears tou'ards sales tax on Rural Developnrcnr Cess component till date-Orders-Issued. ORDER: The Government herebv waive the outsr i !d ing demand relatins to levv of Rural Develo pnler ll Cess on actual purchase prices paid by millers or ! ! _:rlld absyg rninlrnum support price of addy ancl al o the outstandins arrears towards sales tax on I(ural Development Cess component of Purchasc V r rrc ol' Paddv. till date. (emphasi added). 2. The Commissioner of Andhra Pradesh, Hyderabad necessary action, accordingly. Conr rnercia I is requested AXCS. t ake (By order and in the name of Covernor ol',Ar dlrra Pradesh). N.S. Ilarihararr Principal Secretary to Cr vcrnrncnt." 4

6. A plain reading of two C.Os would emphatically make things clear that so far as G.O.Ms.No.9Sl, dated 10.09.2023 is concemed there was a clear exernption granted by the State Govemment from the levy of sales tax on the Rural Development Cess component on the purchase value of paddy by the rice miller which makes the effect and operation of G.Os. jurisdiction with effect from I 0.09.2003.

7. Now coming to G.O.Ms.No.952, dated 10.09.2003, a reading of the same again would make it ernphatically clear that by this G.O. the Government infact intended to rvaive the recovery of arrears towards sales tax on Rural Developmcnt Cess component on the purchase value of paddy, till datc i.e. the date on which it is published which in the instant case w'as 10.09.2003. This in other way means the effect of G.O.Ms.NO.952 is granting of exemption or waiver for the previous years also. tt is this tact which has been taken note ofby the Tribunal in the coursc of allorving the revision petitions in favour of the assessee. 'l'hcrc clocs not seem to be any good ground raised by the State (iovernment to show that the finding so arrived at by the Tribunal is contrary to the intention of the Government in the course ol passing of albrcsaid mentioned i ,;. 5 two G.Os i.e. G.O.Ms.No.95l and 952, dated 10.09.20( i. No case has been made out by the State Government to shov that there were any other G.Os. issued by the Government wi I which the Government could have levied either sales tax or ;ould have recovered the arrears of the sales tax on the Rural - eveloptnent Cess component. Moreover, the said finding given by he Tribunal is strictly anatyzing two G.Os which makes the finr ing ol lact, which gives minimal scope of interference under Secti ln 22 of the GS-f Act. We do not find any case made calling for in ertbrence to the impugned order

8. The Tax Revision Case referred by the pt:t Ltioner-State accordingly stand rejected and the question o[ law d:::ided by the Tribunal stands affirmed. Consequently, miscellaneous petitions pending, il any, shall stand closed SD/ R.KARTHIKEYAN . OINT REGISTRAR \ e\rroru oFFrcER //TRUE COPY// To, 1 . The Sales Tax Appellate Tribunal, Andhra Pradesh, Hydtl lbad. 2. One CC to Mr Swaroop Oorilla, Special Government [) :ader for State Tax loPUcl

3. Two CD Copies m/PSL )A;,. ,/ KA HIGH COURT DATED:1011212025 ORDER TREVC.No.206 of 2010 ; r1'C:lt4 i ' JAN 2026 Cl c) -\* iF/'.:1 DISMISSING THE TREVC 6 )1 //? I Il-) 1