2004 (11) TMI 325

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....bsp; --------------------------------------------------   ORDER   These appeals are against the judgment of the Andhra Pradesh High Court dated September 2, 1998 See [1999] 112 STC 51. Briefly stated the facts are as follows: Under the Andhra Pradesh General Sales Tax Act, 1957, sales tax was leviable on jewellery at the rate of four per cent, by virtue of item 21 of the First Schedule. On May 19, 1995, G. O. Ms. No. 252 was issued. The relevant portion of which reads as follows: .."(b) that the tax leviable under the said Act shall in respect of sale of jewellery, including those set with precious stones be at the reduced rate of two per cent. (c) that the tax leviable under the said Act shall in respect of s....

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....t.'" This errata clarifies that even on jewellery the tax would be leviable at the reduced rate of three per cent. After issuance of this errata, writ petitions were filed by some of the jewellers claiming that the errata could operate prospectively only. It was claimed that for the period between April 23, 1997 and May 3, 1998, the tax was to be levied at the rate of two per cent as per G. O. No. 252. By the impugned judgment the High Court has accepted this contention. The High Court has proceeded on an entirely wrong assumption that the errata increased the rate of tax when in fact it had reduced the rate of tax.   The High Court has been persuaded to accept an argument that G. O. Ms. No. 303 dated April 15, 1997 never saw ....