( 1 ) W. P. No. 21878 of 1999: in this writ petition G. O. Ms. No. 183, revenue (ct-ii), dated 6. 3. 1999 has been challenged on the ground that it is unreasonable, discriminatory and arbitrary.

( 2 ) THE petitioner was a registered dealer and was engaged in the business of manufacture and sale of beedies at kamareddy. He acquired rights of successful bidder in the auction conducted by 2nd respondent for the year 1999 and entered into fresh agreement with the 2nd respondent for procurement of beedi leaves from forest areas in Andhra Pradesh. Prior to 1. 8. 1996 the beedi leaves were taxable at last purchase point under entry No. 18 of the ii schedule. By act 27/96 the beedi leaves were shifted to entry No. 196 of the i schedule with effect from 1. 8. 1996. According to the petitioner, in terms of the entry No. 196 of the i schedule, on procurement of beedi leaves by him, they would be at first sale point in the assessment of the 2nd respondent and in terms of Section 5-b of the Andhra Pradesh General Sales Tax Act (for short "the act"), levy of concessional rate of tax of 4% would be attracted when the goods were sold for use in manufacture or processing of goods. The petitioner contends that rules 30-a and 30-b of the Andhra Pradesh general sales tax rules govern the procedure for registration of manufacturers, issuance of g forms and other incidental matters. According to the petitioner, in terms of Section 5-b of the act, he being a manufacturer of beedies can buy beedi leaves, a raw material and use them in manufacture of beedies and under Section 5-b (1) (a) of the act he can issue g forms to the 2nd respondent to enable them to charge sales tax at 4%. There were some earlier litigation also when the 2nd respondent was directed by the commissioner of commercial taxes not to accept g forms for beedi leaves and the beedi leaves be charged at 9%. The high court had allowed the writ petitions upholding the beedi manufacturers rights to issue g forms issued by buyers. This judgment was reported in Sable Weghire and Company Ltd. V. A. P. Forest Development Corporation Ltd. and another (109 stc 656 ). After this judgment, the government passed G. O. Ms. No. 183, revenue (ct-ii), dated 6. 3. 1999 which reads as under:"in exercise of the powers conferred by clause (b) of sub-Section (1) of Section 5-b of the Andhra Pradesh General Sales Tax Act, 1957 (A. P. Act vi of 1957) and in supercession of the orders issued i notification xxv to G. O. Ms. No. 625, revenue (ct. ii) department, dated 31st July, 1996, the governor of Andhra Pradesh hereby directs that the following goods are not eligible for concessional rate of tax: (a) petrol; (b) diesel oil; (c) all kinds of gases whether in compressed, liquefied or solidified or in any other form; and (d) beedi leaves. "

( 3 ) THIS G. O. has been challenged in this writ petition. Earlier to this G. O. , G. O. Ms. No. 625 was issued on 31. 7. 1996 and by this G. O. it was contemplated that the tax shall be levied and collected at a concessional rate of four paise in the rupee on the turnover of sales by any dealer of any goods, other than the goods i. e. , (a) petrol, (b) diesel and (c) all types of gases mentioned in entry 118 of first schedule. So what was in effect done by G. O. Ms. No. 183 was that it added beedi leaves to the negative list which could not avail the concessional rate.

( 4 ) THE argument made at the bar for striking down the G. O. Ms. No. 183 was that the government had no power to issue a notification making the goods of raw material ineligible for getting the benefit of concessional rate of tax because of the mandate under Section 5-b (l) (b) of the act. It is submitted that Section 5-b (l) (b) of the act is meant only to notify such other goods apart from those falling under clause (a) as eligible for concessional rate under Section 5-b of the act. It is contended by the learned counsel for the petitioner that Section 5-b (l) (b) of the act cann