THE HON’BLE SRI JUSTICE P.SAM KOSHY

AND

THE HON’BLE SRI JUSTICE SUDDALA CHALAPATHI RAO

TREVC.No.272 of 2009

O R D E R: (Per the Hon’ble Sri Justice Suddala Chalapathi Rao)

Heard Sri T.Chaitanya Kiran, learned Assistant Government

Pleader for State Tax appearing for the petitioner/Revenue and perused the record. None appeared for the respondent/assessee. 2. This Tax Revision Case is filed assailing the order in TA.No.610 of 2003, dt.01.07.2009, on the file of the learned Sales Tax Appellate Tribunal, Andhra Pradesh at Hyderabad (for short

‘the Tribunal’).

3. The brief facts of the case are that the respondent/assessee namely M/s. B.P.L. Telecom Limited, HACA Bhavan, Hyderabad, is involved in the business of trading of electronic goods i.e., Push Button Telephones/EPABX systems, Walkie-Talkies, and it is registered on the rolls of Commercial Tax Officer, Hyderabad Circle at Hyderabad(for short ‘the CTO’); that for the assessment year 1999-2000, the Commercial Tax Officer (for short ‘the CTO’) passed a final assessment order, dt.18.08.2000, levying tax @

3.5% on the net turnover of Rs.87,27,248/- and @ 8% on Rs.50,62,993/- relating to EPABX systems, telephone and electronic component spares.

4. Subsequently the Deputy Commissioner(CT), Abids Division, issued a revision show-cause notice under Section 20(2) of APGST Act, 1957 (for short ‘the Act’) proposing revised tax @ 16% on the total turnover of Rs.87,27,248/-, and @ 12% on Rs.50,62,993/- for the period up to 31.12.1999 and from 01.01.2000, respectively.

5. Aggrieved by the said revisional order, the respondent/assessee filed an appeal before the learned Tribunal in TA.No.610/2003.

6. The learned Tribunal, after examining the record and appreciating the various Government Orders issued from time to time and relying on the judgment of this Court in Super Cassettes Industries Ltd., Hyderabad vs. State of Andhra Pradesh, 47APSTJ 27, held that ‘push-button telephones’, ‘EPABX systems’ and ‘walky-talkies’ are classified as ‘electronic goods’ as per the list prepared by the Electronic Commission of India and do not fall under the category of ‘sound transmitting system’, and thus, eligible for concessional tax under G.O.Ms.No.252, dt.19.05.1995. 7 Assailing the said order of the learned Tribunal, dt.01.07.2009, the petitioner/Revenue has filed the present Tax Revision Case on the following substantial question of law:

Whether the audio cassettes dealt by the respondent/assessee are entitled to concessional rate of tax by virtue of G.O.Ms.No.252 dt.19.05.1995?

8. Learned Assistant Government Pleader for petitioner/ Revenue contended that the order passed by the learned STAT is unsustainable in law. He argued that with the introduction of Entries 38 to 38D in Schedule I of the Act effective from 01.01.2000 prescribing specific tax rates for electronic goods, any earlier Government Orders granting concessional rates, including G.O.Ms.No.252, dt.19.05.1995, automatically ceased to have effect. He further argued that once the statute itself specifies the tax rate, prior executive notifications cannot be made enforceable, regardless of earlier interpretations.

9. It was further submitted that the Tribunal failed to appreciate that, after the statutory amendment, concessional rates under earlier Government Orders cannot coexist with the newly prescribed rates under the amended Schedule, and thus, the order of the Tribunal is liable to be set aside, and the revisional authority’s order needs to be restored.

10. It was contended by the respondent/assessee before the learned Tribunal that the goods in question i.e., walkie-talkies, push button telephones and EPABX systems, are recognized as ‘electronic goods’ by the Electronic Commission of India and the Government of Andhra Pradesh vide Memo, dt.01.06.1999, has clarified the same for taxation purposes, and hence, the goods in question fall within the scope of ‘electronic goods’ eligible for concessional tax in terms of G.O.Ms.No.252 at Item No.16.1 @ 3.5% o