( 1 ) THE respondent herein is a manufacturer and dealer in card board boxes. For the assessment year 1977-78, his total turnover was less than Rs. 25,000/ -. The assessing authority i. e. , the Assistant Commercial tax Officer held that card board boxes were unclassified goods. Daring 1977-78 if the total turnover ot unclassified goods was less than Rs. 25,000/- it was not subjected to tax under Section 5 (1) of the Andhra Pradesh general Sales Tax Act, 1957 (hereinafter referred to as "act") and hence exemption was granted for the entire turnover in regard to the sales of card board boxes in 1977-78.

( 2 ) DURING thecourse of audit conducted by the appropriate authority the assessing authority was informed that card board boxes come within the purview of item 19 of the 1st Schedule and hence they are liable to tax at the point of first sale at the rate of 4% irrespective of the turnover. Thereupon, the assessing authority issued a show cause notice to the respondent herein to show as to why the turnover in regard to card board boxes should not be subjected to tax at the rate of 4%. Though in the said notice the assessing authority referred to Section 20 ot the Ac