ORDER

1. THESE APPEALS ARE AGAINST THE JUDGMENT OF THE ANDHRA PRADESH HIGH COURT DATED 2-9-1998.

2. BRIEFLY STATED, THE FACTS ARE AS FOLLOWS:

UNDER THE ANDHRA PRADESH GENERAL SALES TAX ACT OF 1957, SALES TAX WAS LEVIABLE ON JEWELLERY AT THE RATE OF 4%, BY VIRTUE OF ITEM 21 OF THE FIRST SCHEDULE. ON 19-5-1995, GO NO. 252 WAS ISSUED. THE RELEVANT PORTION OF WHICH READS AS FOLLOWS:

"(B) THAT THE TAX LEVIABLE UNDER THE SAID ACT SHALL IN RESPECT OF SALE OF JEWELLERY INCLUDING THOSE SET WITH PRECIOUS STONES BE AT THE REDUCED RATE OF2%.

(C) THAT THE TAX LEVIABLE UNDER THE SAID ACT SHALL IN RESPECT OF SALE OF PRECIOUS STONES, LOOSE, OTHER THAN PEARLS, BE AT THE REDUCED RATE OF 2%."

THUS, BY VIRTUE OF THIS GO, THE RATE OF TAX ON JEWELLERY WAS REDUCED TO 2%.

3. ON 15-4-1997, GO NO. 303 WAS ISSUED WHICH REFERRED TO GO NO. 252 AND THE RELEVANT PORTION PROVIDED AS FOLLOWS:

"(A) CLAUSE (B) OF THE SAID NOTIFICATION SHALL BE RESCINDED.

(B) THE TAX LEVIABLE UNDER THE SAID ACT SHALL BE IN RESPECT OF SALE OF PRECIOUS STONES, LOOSE, OTHER THAN PEARLS, BE AT THE REDUCED RATE OF 3%." IT IS CLEAR THAT BY VIRTUE OF THIS GO, TAX ON PRECIOUS STONES, OTHER THAN PEARLS WAS TO BE LEVIED AT THE RATE OF 3%. BUT CLAUSE (B) OF THE EARLIER GO NO. 252 STOOD RESCINDED. THE EFFECT OF THIS WAS THAT ON JEWELLERY TAX AGAIN BECAME LEVIABLE AT THE RATE OF 4%. IT APPEARS THAT SOME JEWELLERS AND EVEN SOME ASSESSING OFFICERS WERE UNAWARE OF THIS GO. THEREFORE SOME RETURNS WERE FILED INDICATING TAX LEVIED AT THE RATE OF 2%. SOME OF THESE RETURNS HAVE BEEN ACCEPTED BY SOME OF THE ASSESSING OFFICERS.

4. THEREAFTER ON 4-5-1998, AN ERRATA WAS ISSUED WHICH READS AS FOLLOWS:

5. THIS ERRATA CLARIFIES THAT EVEN ON JEWELLERY THE TAX WOULD BE LEVIABLE AT THE REDUCED RATE OF 3%.

6. AFTER ISSUANCE OF THIS ERRATA, WRIT PETITIONS WERE FILED BY SOME OF THE JEWELLERS CLAIMING THAT THE ERRATA COULD OPERATE PROSPECTIVELY ONLY. IT WAS CLAIMED THAT FOR THE PERIOD BETWEEN 23-4-1997 AND 3-5-1998, THE TAX WAS TO BE LEVIED AT THE RATE OF 2% AS PER GO NO. 252. BY THE IMPUGNED JUDGMENT THE HIGH COURT HAS ACCEPTED THIS CONTENTION. THE HIGH COURT HAS PROCEEDED ON AN ENTIRELY WRONG ASSUMPTION THAT THE ERRATA INCREASED THE RATE OF TAX WHEN IN FACT IT HAD REDUCED THE RATE OF TAX.

7. THE HIGH COURT HAS BEEN PERSUADED TO ACCEPT AN ARGUMENT THAT GO NO. 303 DATED 15-4-1997 NEVER SAW THE LIGHT OF THE DAY. IT WAS BROUGHT TO THE ATTENTION OF THE HIGH COURT THAT GO NO. 303 HAD IN FACT BEEN BROUGHT TO THE NOTICE OF THE ANDHRA PRADESH FEDERATION OF CHAMBERS OF COMMERCE. BUT SURPRISINGLY THE HIGH COURT HELD THAT EVEN THIS NOTICE WOULD NOT BY ITSELF PROMPT THE ASSESSING AUTHORITY TO ASSESS AT THE ENHANCED RATE.

8. IT COULD NOT BE DENIED THAT GO NO. 303 DATED 15-4-1997 WAS PUBLISHED IN THE OFFICIAL GAZETTE ON 23-4-1997. IT IS SETTLED LAW THAT ONCE PUBLICATION IN THE OFFICIAL GAZETTE TAKES PLACE, IT IS DEEMED TO BE KNOWN TO ALL. IGNORANCE OF LAW CAN BE NO EXCUSE. ONCE THE GO WAS PUBLISHED, FROM THE DATE IT WAS PUBLISHED, IT BECAME EFFECTIVE. AS IT BECAME EFFECTIVE FROM THAT DATE, THE TAX WAS LEVIABLE AT THE RATE OF 4%. IF SOME ASSESSING OFFICERS, DUE TO THEIR OWN IGNORANCE OR LAXITY ACCEPTED RETURNS AT THE RATE OF 2% IT DID NOT PERMIT THE HIGH COURT TO IGNORE THE LAW AND CONTINUE SUCH LAXITY TO PREVAIL. IT MUST BE REMEMBERED THAT THE ASSESSING OFFICER, WHO HAD ASSESSED WRONGLY, COULD ALWAYS REOPEN THE ASSESSMENT.

9. ALL THAT THE ERRATA, ISSUED ON 4-5-1998, DOES IS REDUCE THE RATE OF TAX E FROM 4% TO 3%. THE HIGH COURT HAS THEREFORE ALSO ERRED IN CONCLUDING THAT I THE RATE OF TAX HAS BEEN INCREASED. THE WHOLE JUDGMENT PROCEEDS ON THE BASIS THAT THE RATE OF TAX HAS BEEN INCREASED WHEN IN FACT IT HAS BEEN REDUCED.

10. WE ARE UNABLE TO ACCEPT THE SUBMISSION THAT AS GO NO. 304 IS, AN ERRATA, IT NECESSARILY MEANS THAT GO NO. 303 HAD NEVER COME INTO EXISTENCE. THE WORD ERRATA, IN OUR VIEW, IMPLIES THAT THERE WAS SOMETHING IN EXISTENCE F I WHICH IS BEING CORRECTED. THE FACT THAT THIS WAS AN ERRATA ITSELF SHOWED THAT THERE WAS SOMETHING IN