Fair market price and statutory conditions must be properly established before acquisition proceedings can proceed under sales tax law.

Acquisition proceedings under section 28A of the Andhra Pradesh General Sales Tax Act were found unsustainable because the competent authority had not properly ascertained the fair market price and had not satisfied the statutory conditions for invoking the power. The record showed fluctuating and unsupported estimates of stock value, and the authority had relied on different methods and values at different stages without establishing a proper factual basis under section 2(gg). Concurrent findings of the Tribunal, including the third Member, held that the statutory requirements for acquisition were not met, and the order setting aside the acquisition proceedings was upheld.

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Issues: Whether the Tribunal was justified in setting aside the acquisition proceedings initiated under section 28A of the Andhra Pradesh General Sales Tax Act, 1957 on the ground that the competent authority had not properly ascertained the fair market price and had not satisfied the statutory requirements for invoking the power.

Analysis: The material relied upon by the competent authority showed fluctuating and unsupported estimates of the stock value, while the Tribunal found that the fair market price had not been ascertained in the manner contemplated by section 2(gg) of the Act. The authority had adopted different methods and different values at different stages, and the record did not establish a proper factual basis for the conclusion that the case attracted section 28A. The majority of the Tribunal, including the third Member, recorded concurrent findings that the statutory conditions for acquisition were not satisfied.

Conclusion: The Tribunal's order setting aside the acquisition proceedings was upheld and no interference was called for in revision.

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