The Andhra Cement Company Ltd. vs Government of Andhra Pradesh and Others

S. Obul Reddi, C.J.—These two writ petitions are directed against the assessment orders of the Commercial Tax Officer, Krishna West I, Vijayawada, dated 10-12-1973 for the two assessment years in question. The assessing authority has failed to follow the Judgment of this court in K.C.P. LTD. (Ramakrishna Cements) and Another Vs. Government of Andhra Pradesh and Others, on the ground that that decision has been distinguished by the Patna High Court in Commissioner of Commercial Taxes Vs. Ashoka Marketing Limited, The Patna High Court, as may be seen from the impugned order of the Commercial Tax Officer, observed :--

"The A.P. High Court has merely followed the decision of the Supreme Court in Hyderabad Asbestos Cement Products Ltd. Vs. State of Andhra Pradesh, and if I may say so with very great respect without noticing the crucial and vital point of distinction between that case and the kind of case which was being dealt with by the A.P. High Court and which falls for consideration before us."

Whatever be the view taken by the Patna High Court on the facts of the case before that Court, it is not permissible to the assessing authority to say that he will not follow the decision of this court for the reason that the Patna High Court had distinguished the judgment of this Court. We have no hesitation in condemning the attitude of the Commercial Tax Officer in not following the decision of this Court which he is bound to. The assessing authority should know that the Patna High Court did not follow the decision of this Court and it came to its own conclusions on the material placed before it. But the Commercial Tax Officer cannot arrogate himself to the position of another High Court and say that he prefers to follow the view expressed by the Patna High Court for the reasons stated by the Patna High Court in its judgment. The Supreme Court has condemned in no uncertain terms the attitude of the subordinate tribunals or officers in not implementing or giving effect to the decisions of the superior Courts or superior authorities. In The Bhopal Sugar Industries Ltd. Vs. The Income Tax Officer, Bhopal, S.R. Das, J., speaking for the Court, observed :--

"Where the Income Tax Officer had virtually refused to carry out the clear and unambiguous directions which a superior tribunal like the Income Tax Appellate Tribunal, had given to him by the final order in exercise of its appellate powers in respect of an order of assessment made by him, such refusal is in effect a denial of justice, and is furthermore destructive of one of the basic principles in the administration of justice based on it is on the hierarchy of courts."

The Assessing Authority being an inferior tribunal was bound to follow the decision of this court. It is not open to him to prefer the decision of the Patna High Court to the decision of this court.

We, therefore, set aside the impugned assessment orders and allow the writ petitions with costs to the extent of the freight charges. Advocate''s fee Rs. 100 in each.

Petition allowed.