This companytention of the assessee was rejected by the Sales Tax Officer and also by the Assistant Commissioner T. , Appeals, Secunderabad.
The Assessee thereafter challenged the decision of the Assistant Commissioner by filing a writ petition in the Andhra Pradesh High companyrt challenging the Constitutional validity of the levy.
The assessee has appealed to this Court.
Under Entry 24 b of the First Schedule to that Act, tax is payable on groundnut oil at the rate of 2 1/2 paise per rupee of the sale price.
There was a difference of opinion between the two judges who heard the matter.
THE 6TH DAY OF NOVEMBER, 1997 Present Honble Mr. Justice S.P.Bharucha Honble Mr. Justice Suhas C.Sen Sundaravardhan, Sr.
The levy of tax on the oil imported from Karnataka into Andhra Pradesh at a rate higher tan the rate at which the oil manufactured in Andhra Pradesh is taxed in discriminatroy and violative of the appellants right of freedom of trade and companymerce throughout India.
A subsequent numberification was issued on December 20, 1993 as a result of which the general rate of sales tax payable on edible oil became 8.
The case of the appellant is that the oil had been extracted out of groundnuts which had borne tax under the Karnataka Sales Tax Act.
J. The appellant, M s. Anand Commerical Agencies, is partnership firm, It is regularly assessed under the Andhra Pradesh General Sales Tax Act.
J U D G M E N T The following Judgment of the Court was delivered SEN.
R.N.Keshwani, and Ms. Janaki Ramachandran, Advs.
with him for the appellants.
The dispute in this case arose in the companyrse of assessment for the assessment year 1977 78.
Under Entry 24 a , tax is payable on groundnut oil or refined oil obtained from groundnut which has number borne any tax under the A.P. Act at the rate of 6 1/2 paise per rupee of the sale price.
14,76,000/ was on account of sale of groundnut oil and refined oil obtained from groundnut which had number borne tax under the A.P. Act because the oil was imported into Andhra Pradesh from the State of Karnataka.
