S. B. SINHA, J.

A short but interesting question of law as regards interpretation of sub-section (2-A) of section 20 of the Andhra Pradesh General Sales Tax Act, 1957 (for short, "the Act") arises for consideration in these writ petitions.

All these writ petitions were filed by M/s. Indo National Ltd., Nellore, a company incorporated under the Companies Act, 1956. It is a registered dealer under the Act as also under the Central Sales Tax Act.

It is engaged in the manufacture and sale of dry battery cells of different sizes, which are mostly used for torchlights, transistors, calculators, etc. It has depots or branches at various places in different States throughout the country. Apart from effecting local sales within the State of Andhra Pradesh, the petitioner also sells the goods in the course of inter-State trade as well as by effecting sales outside the State of Andhra Pradesh through its branches and depots. The goods are sent on stock transfer from the petitioner's factories in Nellore district to the concerned branches and the branches sell the goods to the authorised wholesale dealers.

For the assessment years 1978-79, 1979-80 and 1980-81, the assessments were completed by the Commercial Tax Officer (CTO) excluding the branch transfers from taxation, but the Deputy Commissioner of Commercial Taxes, Nellore issued show cause notices on November 14, 1985 proposing to treat stock transfers as inter-State sale. Show cause notices were also issued proposing to assess branch transfers as inter-State sales for the assessment years 1981-82 and 1982-83. The Deputy Commissioner revised the orders of assessment for the years 1978-79, 1979-80 and 1980-81 levying tax on branch transfers and similar orders were passed by the CTO, Nellore for the years 1981-82 and 1982-83. Pursuant to the interim directions of the Supreme Court, the petitioner filed appeals to the Sales Tax Appellate Tribunal against the revisional orders passed by the Deputy Commissioner and also filed appeals against the consequential orders of the CTO before the Appellate Commissioner (Appeals). The Tribunal allowed the appeals by order dated June 19, 1992 and by reason of the said orders, the Appellate Deputy Commissioner allowed the petitioner's appeals on July 16, 1992 for the years 1981-82, 1982-83, 1983-84, 1984-85, 1985-86 and on July 20, 1992 for the year 1987-88.

Thereafter, the Commissioner of Commercial Taxes (CCT), issued show cause notices in CCTs Ref. No. LV(2)/709 to 714 of 1994 dated March 17, 1996 by reason whereof the Commissioner in exercise of the power under section 20(1) of the Act sought to revise the orders dated July 16, 1992 passed by the Appellate Deputy Commissioner in respect of the assessment years 1981-82 to 1987-88 relating to the alleged branch transfers on the ground that the orders passed by the Appellate Deputy Commissioner are incorrect and prejudicial to the interest of the Revenue. These show cause notices were challenged in the present writ petitions.

The assessing authority held that the turnovers relating to the assessment years in respect of the alleged branch transfers were exigible to tax under the Central Sales Tax Act (for short, "the CST Act") as they relate to inter-State sales. The Appellate Deputy Commissioner relying on the order of the Tribunal referred to above took the view that they were branch transfers and therefore not exigible to tax under the CST Act. The said order was sought to be revised by the Appellate Commissioner by the impugned show cause notices on the following grounds :

1. Extensive enquiries by the department revealed that the so-called branch transfers were only cover-up for actual inter-State sales.

2. The agreements between the respondent and some outside buyers clearly establish that the goods under dispute were supplied from their factory in TADA (Nellore District). Clause (17) of the agreement clinches this issue. From this it is very clear that the respondent clearly effected