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2012 (2) TMI 460 - HC - VAT and Sales TaxCircular of the Commissioner of Commercial Taxes, Andhra Pradesh bearing Ref. No. AIII(1)/98/ 2010, dated May 22, 2010 challenged on the ground that it is contrary to proceedings dated November 21, 2007, October 21, 2008 and November 13, 2009, issued by the first respondent - Held that:- The clarifications in the impugned circular issued by the Commissioner constitute guidelines issued in exercise of powers under rule 16(2)(c) of the APVAT Rules, 2005. As rightly pleaded in the Commissioner's counter and clarified in the impugned circular, rice millers are not entitled to any exemption from liability to tax under the provisions of the APVAT Act, 2005 in respect of any part of turnovers of sales made otherwise than to FCI/State Agencies and no exemption on any part of the turnover of sales made in the open markets, otherwise than towards levy is comprehended in the policy of the Union of India exemplified by the letters dated November 21, 2007, October 21, 2008 and November 13, 2009. The impugned circular of the Commissioner merely clarifies a position inherent and integral to the policy of the Union as set out in the three letters of the 1st respondent. Thus no illegality in the circular dated May 22, 2010 issued by the Commissioner of Commercial Taxes, Andhra Pradesh, nor in proceedings initiated by the concerned assessment authorities for levy of tax from the petitioners, warranting interference under article 226 of the Constitution. W.P. dismissed.
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