IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD THE HON’BLE SRI JUSTICE P.SAM KOSHY AND THE HON’BLE SRI JUSTICE NARSING RAO NANDIKONDA WRIT PETITION Nos.8785 and 13017 of 2009 DATE: 11.02.2026 BETWEEN :

M/s.Vasista Foods & Fats (P) Ltd., Tallampadu Village, Khammam Rural Mandal, Khammam District, rep. by its Managing Director, Mr.Ch.Koteswara Rao …Petitioner AND The Commercial Tax Officer-I, 1st Floor, Rajeshwari Complex, By-Pass road, Khammam.

…Respondent

COMMON ORDER

(per the Hon’ble Sri Justice P.Sam Koshy)

Since the issue arising out of two writ petitions is one and the same and parties thereto are also same, we proceed to decide the writ petitions by way of common order.

2. Heard Mr. A.V.A.Siva Karthikeya, learned counsel representing Mr. S.Vivek Chandra Sekhar, learned counsel for the petitioner; and Mr. Swaroop Oorilla, learned Special Government Pleader for State Tax, for the respondent.

3. For convenience, the facts in Writ Petition No.8785 of 2009 are discussed hereunder.

4. The instant Writ Petition is filed by the petitioner under Article 226 of the Constitution of India praying the Court for issuance of a Writ of Mandamus to declare the order of assessment dated 11.02.2009, issued in Form VAT 305 by the respondent / Commercial Tax Officer-I, as illegal, void and to set aside the same (for short, ‘the impugned order’)

5. The petitioner herein is primarily aggrieved of the action of the Commercial Tax Officer insofar as not allowing input tax credit and also insofar as not refunding the amount due to the petitioner.

6. The petitioner herein is a registered dealer with the respondents under the Andhra Pradesh Value Added Tax, 2005 and Central Sales Tax Act, 1956. The petitioner is engaged in the business of manufacture and sale of Castor Oil and its derivatives.

The petitioner’s establishment started production in the year 2000. In order to enhance the business activity in the State and in terms of scheme introduced by the State Government, the Government had brought in a G.O. governing the field holding the petitioner entitled for sales tax deferment for an amount of Rs.2,43,12,190/- to be availed within 14 years, i.e., starting from 30.03.2000 to 29.03.2014. The petitioner meanwhile had availed the tax deferment for an amount of Rs.1,28,83,011/- and there was a balance of Rs.1,20,29,179/- to be also recovered and adjusted. The period involved in the present writ petition is the Assessment Year 2007- 2008 during which time the petitioner had undertaken certain intra- State sales which included sales made to one M/s.J.K. Oils of Jeedimetla, Hyderabad to the tune of Rs.17.19 crores. In addition, the petitioner had also declared inter-State sales with a turnover of Rs.8,53,15,802/-, and the tax payable being Rs.24,92,583. In addition, the petitioner also got export sales to the tune of Rs.18,61,31,733/-, during the relevant period, all of which clubbed together led to entitlement of the petitioner for refund of corresponding input tax credit which approximately worked out to Rs.1,00,60,874/-.

7. However, the Department on the other hand issued Form 305A dated 03.10.2008 and in the process disallowed the benefit of tax deferment of an amount of Rs.25,96,687/- and thereby restricted eligible input tax credit to sum of Rs.73,48,200/-. Later on, there was yet another revised show-cause notice issued in Form 305A dated 22.11.2008 wherein the disallowance of the benefit of tax deferment stood enhanced from Rs.25,96,687/- to Rs.69,42,938/- alleging that certain inter-state sales made in the name of M/s. J.K. Oils were more of fictitious nature. On receipt of the show-cause notice, and revised show-cause notice, the petitioner approached the Department seeking for some time to enable him to file reply to the show-cause notices. The last request made by the petitioner to the Department was on 30.01.2009, the acknowledgment of which was received by the petitioner on 31.01.2009. Thereafter, there was no further development and