THE HON’BLE SRI JUSTICE T. VINOD KUMAR And THE HON’BLE SMT. JUSTICE P.SREE SUDHA WRIT PETITION Nos.22510 and 22615 of 2006 COMMON ORDER: (Per Hon’ble Sri Justice T.Vinod Kumar W.P.No.22510 of 2006 is filed with the following prayers:

(a) Declaring the action of the 2^nd respondent in passing the impugned/revised assessment order dated 4-2-2006 in proceedings Rc.No.1/3071/2003-04/APGST as illegal, arbitrary, high handed and without authority of law and contrary to the provisions of the Act and set aside the same and declare that the petitioner is not exigible to tax on the disputed turnover under Works Contract since the petitioner has not transferred any property in goods in favour of any third party.

(b) Declare the action of the 3^rd respondent in rejecting the petitioner’s appeal for the assessment year 2003-2004 under the APGST Act by the impugned order dated 01-07- 2006 in proceedings AR Sl.No.P/261/2005 on the ground that no proof of payment was produced before him as illegal, arbitrary and without authority of law and contrary to the provisions of the Act and set aside the same and declare that the petitioner need not deposit the 12.5% of the disputed since the petitioner was granted exemption for payment of Sales Tax being the recognized Special Tourism Project under the A.P. State Tourism Policy, 1998 and pass such other order or orders ….”

2. W.P.No.22615 of 2006 is filed with the following prayers:

(a) Declaring the action of the 1^st respondent in passing the impugned/revised assessment order dated 4-2-2006 in proceedings Rc.No.1/3071/2004-05/APGST as illegal, arbitrary, high handed and without authority of law and contrary to the provisions of the Act and set aside the same and declare that the petitioner is not exigible to tax on the disputed turnover under Works Contract since the petitioner has not transferred any property in goods in favour of any third party.

(b) Declare the action of the 2^nd respondent in rejecting the petitioner’s appeal for the assessment year 2004-2005 under the APGST Act by the impugned order dated 01-07-2006 in proceedings AR Sl.No.P/262/2005 on the ground that no proof of payment was produced before him as illegal, arbitrary and without authority of law and contrary to the provisions of the Act and set aside the same and declare that the petitioner need not deposit the 12.5% of the disputed since the petitioner was granted exemption for payment of Sales Tax being the recognized Special Tourism Project under the A.P. State Tourism Policy, 1998 and pass such other order or orders ….”

3. Since, the parties are one and the issue involved is same, these Writ Petitions are being disposed of by this common order. 4. The facts set out in W.P.No.22510 of 2006 are taken for consideration of these Writ Petitions.

5. Heard learned counsel for the petitioner and learned Special Standing Counsel for Commercial Taxes appearing on behalf of respondents, and perused the record.

6. The petitioner has filed the present Writ Petitions assailing the action of the 2^nd respondent in passing the revised assessment order date 04-02-2006 for the assessment year 2003-04 and 2004-05 under the provisions of the Andhra Pradesh General Sales Tax Act, 1957 ( for short ‘the Act’) by treating the petitioner has having executed works contract of construction and subjecting the purchases made by it by adding 15% profit as being illegal, arbitrary and without authority of law and contrary to the provisions of the Act.

7. It is the case of the petitioner that aggrieved by the aforesaid order of assessment, it had availed the remedy provided under Section 19 of the Act by approaching the 3^rd respondent authority, and the 3^rd respondent by order dated 01-07-2006 had rejected the appeal on the ground that the petitioner had failed to make payment of 12.5% of the disputed tax as pre-condition for admission of the appeal as provided under Section 19(1) of the Act.

8. Petitioner contends that originally, a Development Agreement dated 27-06-2