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TMI Blog2025 (2) TMI 1014X X X X Extracts X X X X X X X X Extracts X X X X ..... established a unit in the Visakhapatnam Special Economic Zone (SEZ). For the purposes of setting up the said plant, an EPC contractor named M/s. Abjhijeet Projects Limited was awarded the contract of setting up the unit. M/s. Abjhijeet Projects Limited in turn sub-contracted the work, on a back to back basis, to the petitioner herein, by way of a letter of intent, dated 04.03.2010. 3. The contention of the petitioner was that, by virtue of Entry 59-A in the 1st schedule to the AP VAT Act, 2005, the petitioner, as a sub-contractor of M/s. Abjhijeet Projects Limited was entitled to an exemption of the turnover relating to the works contract under which the SEZ unit of M/s. Abhijeet Ferro-tech Limited was being established. The further conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner had approached this Court, by way of various writ petitions. The details of these petitions are as follows: Sl.No. Writ Petition No. Assessment/Penalty Orders challenged in the Writ Petition Appellate Orders challenged in the Writ Petition 01. 16649/2011 A.R.COM/2/2010 Dated 16.03.2011 T.A.No.66 of 2011 dated 16.05.2011 02. 16514/2014 A.A.O. No. 37549 Dated 29.04.2014 03. 1415/ 2016 A.O. No. 44372 Dated 04.12.2015 04. 29384/2016 A.O. No. 26393 Dated 24.06.2016 05. 44149/2016 A.O. No. 27737 Dated 08.07.2016 5. Heard Sri A. Sarveswara Rao, learned counsel for the petitioner and the learned Government Pleader for Commercial Taxes. The relevant provisions of law, which require to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actors, by virtue of the Judgment of the erstwhile High Court of Judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh in M/s. Larsen and Toubro and Others vs. State of Andhra Pradesh (2006) 148 STC 616. 7. However, Section 7A, which was introduced subsequently, on 24.09.2008, states that exemption of tax on sale of goods within the Special Economic Zone will be available on sale of any goods to persons who have been authorized to establish unit in the SEZ or authorized to develop operate and maintain a SEZ. The further condition is that only such sales of goods made for the purposes, set out in Section 7A would be eligible for such exemption. 8. The authority for Advance Ruling and the Sales Tax Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 7A was introduced, and came to be deleted much later. This is also a factor, which has to be taken into account while trying to harmonize both the provisions of law. 12. In the circumstances, we do not find any reason to hold that there is a conflict between Section 7A of AP VAT Act and Entry 59A of the 1st Schedule to the AP VAT Act. In the absence of a conflict, the non-obstante clause does not come into operation and consequently the petitioner was entitled to the benefit of Entry 59-A of the 1st schedule which exempts all the sales made by the petitioner, in the course of execution of the works contract, for M/s. Abhijeet Projects Limited. 13. Consequently, all the impugned orders which are set out above are set aside and the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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