IMPORTANT POINT
Waivers under the CST Act can be granted without re-assessment if the conditions specified in government memos are satisfied.

ORDER :

R. Raghunandan Rao, J.

All these Writ Petitions are being disposed of by way of this Common Order as they raise similar questions of fact and law.

2. Heard Sri S. Dwaraknath, learned Senior Counsel appearing on behalf of Sri Srinivasa Rao Kudapudi, learned counsel for the petitioners and the learned Government Pleader for Commercial Tax.

3. The petitioners, in all these cases are rice millers who are involved in the business of milling of rice and selling the said rice and broken rice to persons within the State and outside the State. They are registered under the Central Sales Tax, Act 1956 [for the “the CST, Act”]. The sales, in the present set of Writ Petitions, relate to sales undertaken under the CST, Act. The normal rate of tax payable by a dealer selling goods under the CST, Act would be 4/5% (The rate of 4% was increased to 5% on 15.09.2011). However, the dealers are permitted to pay tax, under the CST, Act, at a concessional rate of 2% if they were able to produce C-Forms issued by their purchasers affirming that the said goods would either be consumed by the purchasers or would be resold by the purchasers in their respective States.

4. A large number of rice millers and persons dealing with rice had represented to the Government that they were facing immense difficulties in obtaining C-Forms from their purchasers in other States as some of the States had exempted the purchase of sale of rice from tax etc. The Government, after considering such representations had issued a series of memos waiving payment of tax at the full rate and permitting payment of tax at the rate of 2%, even in cases where necessary C-Forms was not produced before the assessing officers. The Government, had initially issued a Memo.No.26197/CT-II(1)/2013, dated 10.05.2016. The relevant paragraph No.2 of the said memo reads as follows:-

“Paragraph No.2:-Government, after careful consideration of the request and in pursuance of the resolution of the Council of Ministers in the reference 4th cited, hereby order to waive the tax payable under CST Act over and above 2% in the absence of C-Forms till 31.05.2014, only for those Rice Millers and dealers in Pulses & Dalls, who remit the tax completely as per the provisions of the CST Act for the period from 01.06.2014 to 31.12.2015 before 30.06.2016 after getting their assessments completed expeditiously. The waiver shall be subject to production of Lorry Receipts/Railway Receipts, CST way bills, proof of exit through the last notified check-post in Andhra Pradesh and proof of receipt of sale consideration from the buyers to prove that the goods were sold to the dealers in other states in the course of inter-state trade. The waiver is not applicable to those Rice Millers and dealers in Pulses & Dalls who have defaulted in payment of even 2% tax. Taxes already paid shall not be refunded under any circumstances..

5. Subsequently, the Government of Andhra Pradesh again issued Memo No.26197/CT-II(1)/2013, dated 27.09.2016, wherein the terms and conditions for grant of waiver were set out. The relevant part of the said memo reads as follows.

“Considering their representations and in pursuance of Resolution No.693/2016, Dt.24.08.2016 of the Council of Ministers, Government, in partial modification of the terms and conditions set out in the waiver orders issued in the reference 5th cited, hereby order to waive the tax payable under the Central Sales Tax (CST) Act over and above 2% in the absence of “C”-Forms by Rice Millers and the dealers in Pulses & Dalls till 31.05.2014, subject to the following terms and conditions.

i) The waiver is applicable only to those dealers who remit the tax completely as per the provisions of the CST Act for the period from 01.06.2014 to 31.12.2015 before 31.12.2016 after getting their assessments completed.

ii) The waiver shall be subject to production of lorry receipts/railway receipts and CST way bills.

iii) The waiver shall also be subject to production of proof of exit through th