THE HON’BLE SRI JUSTICE T. VINOD KUMAR And THE HON’BLE SMT. JUSTICE P.SREE SUDHA WRIT PETITION No.15798 of 2007 ORDER: (Per Hon’ble Sri Justice T.Vinod Kumar This Writ Petition is filed to declare the order of

1^st respondent dated 30-05-2005 to the extent of levying tax @ 8% on the material purchased from outside the State and utilized in execution of works contract as illegal, arbitrary and without jurisdiction.

2. Heard Sri Singam Srinivas Rao, learned counsel representing Sri S.Chakrapani, learned counsel for the petitioner and learned Special Standing Counsel appearing on behalf of respondents, and perused the record.

3. Briefly stated, the facts of the case of the petitioner are that, it is in the business of execution of works contract and opted to pay tax in terms of Section 5G of the Andhra Pradesh General Sales Tax Act, 1957 (for short ‘the Act’) by way of composition; that the 1^st respondent had granted permission to pay tax under Composition Scheme for the Assessment Year 2003-04 w.e.f.

01-04-2003 to 31-03-2004 by issuing Form–L1; and that the benefit of payment of tax under composition method has been renewed for a further period of one year upto 31-03-2005 by endorsement