IMPORTANT POINT
Government clarifying that exemption would be available to certified seeds and/or truthfully labelled seeds. Thus it is “either / or”, and not both.

JUDGMENT

Dr. ARIJIT PASAYAT, J.—

1.Challenge in this appeal is to the judgment of a Division Bench of the Andhra Pradesh High Court dismissing the Revision Petition filed by the appellant under Section 22(1) of the Andhra Pradesh General Sales Tax Act, 1957 (in short the ‘Act’). Before the High Court challenge was to the order passed by the Sales Tax Appellate Tribunal, Andhra Pradesh (in short the ‘Tribunal’).

2.Background facts in a nutshell are as follows :

M/s. Shakthi Seeds (P) Ltd., the appellant herein, is a private limited company and they are dealers in agricultural seeds, chillies, paddy, sun-flower and other crops. It is an assessee and a registered dealer under the Act. The Commercial Tax Officer, Hyderguda Circle, Hyderabad, framed final assessment orders in respect of the turnovers for the assessment year 1992-93 granting benefit of G.O.Ms. No. 604, Rev (S), dated 9.4.1981 and G.O.Ms. No. 129 Rev(CT II), dated 14.2.1989. However, the Deputy Commissioner (CT), Abids Division, Hyderabad, on scrutiny of the assessment finalised by the Commercial Tax Officer vide his proceedings dated 16.12.1993 noticed that the appellant after purchasing chillies, paddy and sun-flower from unregistered dealers, sold those goods as “certified and truthfully labelled seeds” and on that basis claimed exemption in terms of G.O.No. 604 Revenue (S), dated 9.4.1981. He, therefore, proceeded to revise the assessment order and proposed tax on those items as the appellant effected purchase from unregistered dealers and therefore they are liable to tax as first purchasers within the State of Andhra Pradesh. Before the Deputy Commissioner (CT), the appellant contended that they are entitled to exemption in terms of G.O.Ms. No 604 dated 9.4.1981 treating the seeds as truthfully labelled and certified seeds. In support of their contention, they have also placed reliance on the decision in the case of Gururaj Seeds (P) Ltd., v. State of Andhra Pradesh & Ors. (18 APSTJ 46). The Deputy Commissioner (CT), disallowed the claim of the appellant and revised the assessment order framed by the Commercial Tax Officer, Hyderguda, Hyderabad. Then the matter was carried before the Tribunal by the appellant. The Tribunal opining that in order to claim exemption in terms of G.O.Ms. No 604 dated 9.4.1981, the claimant should establish and prove that the seeds in question are certified seeds as well as truthfully labelled seeds and that the appellant-dealer has failed to adduce any satisfactory material and evidence to establish these two conditions for grant of exemption in terms of G.O.Ms. No. 604, dismissed the appeal by its order dated 13.3.2000. The order of the Tribunal was challenged before the High Court by a revision petition on the ground that view taken by the Tribunal that both the conditions should co-exist for getting exemption under G.O.Ms. No. 604 is on a misreading of the G.O.Ms. Tribunal’s view completely ignores the clarification issued by the Government vide its Memorandum No. 13630/CT-II(2)/89-19, dated 26.4.1994. By the said office Memorandum, the Government had directed the Commercial Tax Departmental Authorities to note that both the certified seeds and/or truthfully labelled seeds are entitled for exemption from tax in terms of GOMs. No. 604 dated 9.4.1981. In that context, it was submitted that the department could not have required the appellant-dealer to produce evidence as regards accuracy or veracity of the declaration regarding the labelling.

3.In support of the appeal, learned counsel for the appellant reiterated its stand before the High Court.

4.Learned counsel for the respondent on the other hand supported the findings of the authorities, Tribunal and the High Court.

5.The reasoning of the Tribunal related to certified and truthfully labelled seeds reads as follows :

“Regarding treatment with fungicides, it has to be stated that not all fungicides treated are certified and truthfully labelled seeds. Because, even ordinary and high qu