Purchase tax assessments under VAT law were set aside and remanded for fresh consideration under the binding Division Bench ruling.

Purchase tax assessments under the Andhra Pradesh Value Added Tax Act, 2005 were set aside because the Court applied the earlier Division Bench ruling on the scope of Section 4(4) and its application to declared goods under the Central Sales Tax Act, 1956. The assessing authorities were directed to reconsider the matters afresh in accordance with that binding legal position after giving the petitioners an opportunity of being heard.

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Issues: Whether the impugned orders levying purchase tax under the Andhra Pradesh Value Added Tax Act, 2005 were liable to be set aside and the matters remitted for fresh consideration in the light of the earlier Division Bench ruling.

Analysis: The petitions were disposed of by following the earlier Division Bench decision on the scope of Section 4(4) of the Andhra Pradesh Value Added Tax Act, 2005 and its application to declared goods under the Central Sales Tax Act, 1956. The Court did not enter into the merits of each assessment order, and instead held that the appropriate course was for the assessing authorities to reconsider the matters afresh under the governing legal principles, after granting the petitioners an opportunity of being heard.

Conclusion: The impugned orders were set aside and the matters were remitted to the concerned authorities for fresh orders in accordance with law and the binding Division Bench decision.

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