2010 (11) TMI 864 - ANDHRA PRADESH HIGH COURT

Interpretation of statute - officer - dealer - whether or not the clarification given by the ARA is binding under section 67(4)(ii) of the Act, in respect of goods or transactions in relation to which the clarification was sought, on dealers other than the applicant-dealer? - Held that: - the order of the ARA would be binding "in respect of the goods or trans actions in relation to which a clarification was sought" irrespective of whether such goods or transactions relate to the applicant or other dealers.

It is no doubt true that such a ruling would bind other dealers, who had not sought a clarification, without their being heard by the ARA. That, by itself, would not necessitate this court reading the words "the applicant" into clause (ii) of section 67(4). A construction which requires, for its support, addition or substitution of words or which results in rejection of words, has to be avoided.

It, no doubt, appears harsh that the ruling of the ARA would bind dealers, other than the applicant, in respect of goods or transactions in relation to which a clarification was sought - Under section 67(4)(iii) of the Act, the order of the ARA binds officers in the Commercial Tax Department below the rank of the Commissioner of Commercial Taxes - appeal disposed off.