M/S. Prathista Industries Ltd. vs. CTO, [2003] 61 VST 158(AP).

FACTS
The Petitioner Company, registered
under the VAT and CST Act and engaged in manufacturing of eco-friendlyfertilisers etc., had made an application u/s. 67(1) of the AP VAT Act,
for advance ruling with regard to classification of its 17 products. The
advance authority passed order on 16th November 2011 holding it covered
by entry 19 of Fourth Schedule against which appeal before the Tribunal
was filed. Meanwhile, assessing authority made assessment for the years
2005-2006 and 2006-07 under the VAT and CST Act which were set aside by
appellate authority. The assessing authority framed assessment for the
period 2007-2008 and 2008-2009 under the CST Act and levied tax at the
rate determined by Advance Ruling Authority despite appeal pending
before the Tribunal against the order of Advance Ruling Authority. The
Petitioner Company filed writ Petition before the Andhra Pradesh High
Court challenging the assessment order passed under the CST Act during
the pendency of appeal before the Tribunal.

HELD
The
provision for “advance ruling” is a mechanism introduced by the
legislature to ensure uniformity in orders of assessment, appellate and
revisional order, with regard to the classification of goods under
various entries of the schedule to the Act or rate applicable to such
goods, etc thereby avoiding conflicting orders being passed by different
assessing/ appellate/ revisionary authorities. Such a mechanism can
only be introduced by way of substantive provisions in a statute and
cannot be implied. Sub-section (2) of section 9 of the CST Act only
makes applicable provisions of the State sales tax law relating to
assessment, reassessment, collection and enforcement of tax including
any interest or penalty. Provisions relating to “advance ruling” would
not fall into any of the above categories. An advance ruling may be an
“aid” to an assessment, reassessment, collection of payment of tax but
it is not in itself a mechanism for it which are normally done under the
provisions of Central Sales Tax by the competent authorities under the
VAT Act. The above activities, it cannot be denied, can be done by such
authorities without benefit of advance ruling also (subject to appeal,
revision, etc.) in the hierarchy of authorities provided under the VAT
Act. The assessing authority is entitled to initiate and complete the
assessment under the Central Sales Tax Act in respect of the petitioner
when its application for “advance ruling” was pending before the
authority for advance ruling and pendency of its appeal against the said
ruling before the Tribunal would also not impede or operate disentitle
the assessing authority in any way in initiating or completing
assessment under the Central Sales Tax Act as the provisions of section
67 of the VAT Act would not apply to assessment made under the CST Act.
Accordingly, the High Court dismissed the writ petition filed by the
Petitioner Company.