Adarsh Foundries and Others vs Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad and Others

K. Bhaskaran, C.J.—In all these special appeals u/s 23(1) of the Andhra Pradesh General Sales Tax Act, 1957, the question that falls for decision is whether the Commissioner of Commercial Taxes is justified in holding that cast iron castings are not "cast iron" falling within item 2(i) of the Third Schedule to the Act and that they are liable to be taxed u/s 5(1) of the Act. It is rather surprising that the 1st respondent, the Commissioner of Commercial Taxes, should have taken that view in spite of G.O. Ms. No. 383, Revenue (S) Department, dated 17th April, 1985 wherein, in exercise of the power under sub-section (2) of section 42 of the Act, the Government had clarified that "the cast iron castings" are covered within the term "cast iron including ingot" in sub-section (i) item No. 2 of the Third Schedule to the Act. In spite of the Government having clarified the position in unmistakable language, it is beyond our comprehension that how the Commissioner of Commercial Taxes took the view that the cast iron castings are not included within the item No. 2(i) of the Third Schedule to the Act.

The learned Government Pleader, who appeared for the respondents, cited two decisions in support of the view taken by the commissioner :

(1) Surana Industries, Secunderabad v. State of Andhra Pradesh (1985) 2 STJ 282 (AP).

(2) The Kashmir House Vs. The Deputy Commissioner of Commercial Taxes and Another, .

Neither of these two decisions, in our view, is on the point in issue. We are directly confronted with the question as to whether, where a clarification u/s 42(2) of the Act has been issued by the Government, it is open to the Commissioner to take a view contrary to that and make an assessment according to his interpretation of the provisions in the Schedule or in the section. We are definitely of the view that the Commissioner is bound by the clarification issued by the Government u/s 42(2) of the Act. We find support for this view that we take, in the Division Bench ruling of this Court in Munaga Singaraiah Sreshty and Sons Vs. State of Andhra Pradesh, .

The result, therefore, is that we quash the various orders of the 1st respondent challenged in these special appeals and restore the orders passed by the Appellate Deputy Commissioner of Commercial Taxes. All the appeals are allowed as above. No costs. Advocate''s fee Rs. 250 in each case.

Appeals allowed.