(V.V.S. Rao)

These two writ petitions are filed by M/s.A.P.Aksh Broad Band Limited against two assessment orders passed on 29.3.2010 for the assessment years 2005-06 and 200607 under the Andhra Pradesh Value Added Tax Act, 2005 (the VAT Act, for brevity). The factual background and the respondents are the same. Therefore, a common order would be proper.

2. The petitioner company is a VAT dealer on the rolls of the first respondent. It is engaged in the business of undertaking laying of fibre cables required for the Telecom industry. The second respondent, namely, Andhra Pradesh Telecom Department (also referred to as A.P.Technologies Services) entrusted to the petitioner the job for laying of cables in Andhra Pradesh for a consideration of Rs.370 crores. The petitioner entrusted the work on sub-contract to the third respondent. The work was either partially or fully completed during 2005-06 and 2006-07. The second respondent statedly suspended execution of the work, and kept it ‘on hold’. The petitioner allegedly did not submit bills and, therefore, treated the value of the fibre cables laid as part of the work in progress and capitalised the same in the Balance Sheet.