ORDER
J. Chelameswar, J.
1. The petitioner is the same in all these four writ petitions ; a proprietary concern and a registered dealer both under the Andhra Pradesh General Sales Tax Act, 1957 and the Central Sales Tax Act, 1956, and an assessee on the rolls of the first respondent, carrying on business in the sale of cashew-nut. It appears from the pleadings before us that the petitioner purchases raw cashew-nut, processes them for obtaining cashew kernel and sells the same either with or without declaration. The processing of the cashew-nut was described by the Supreme Court in the following lines:
Cashew-nut is projected and visible outside the fruit, unlike the other nuts which are enclosed inside the fruit. These raw cashew-nuts purchased from agriculturist are first dried to remove moisture. They are then roasted by expert labourers, who see to it that the nuts are roasted to the required level without getting spoilt. Then the roasted nuts are split by another set of expert labourers to remove the coating shell and to obtain the kernels. These kernels are covered with thin brown skin known as testa. To remove this testa heat treatment is given in a specialised oven called Borma. The kernels are then entrusted to a band of expert labourers who manually remove the testa which gets separated in the Borma oven. This removal of testa is a very delicate operation as also the Borma oven process. Then finally the marketable kernel emerges these are then graded as white wholes, splits, broken, butts, etc.
2. Under G.O. Ms. No. 108, dated May 20, 1996, the State of Andhra Pradesh propounded an incentive scheme for the industries and one of the incentives is that of a tax holiday insofar as the sales tax is concerned. The G.O., contemplates the issuance of eligibility certificate by the Industries Department on the satisfaction that a particular applicant qualifies for the some, or all the benefits propounded in the abovementioned incentive scheme. Pursuant to an application by the petitioner, such a certificate was granted in favour of the petitioner by the Industries Department on August 10, 2000. According to the said certificate, exemption of sales tax to a tune of Rs. 22,15,190 is available to the petitioner during the period commencing from February 24, 2000 to February 23, 2007.
3 For the assessment years 2000-01, 2001-02, 2002-03 and 2003-04, the first respondent assessed the petitioner's liability under the sales tax, after duly giving credit to the benefit of exemption referred to earlier. However, the second respondent chose to revise the said assessments by his orders dated March 22, 2004, October 30, 2003 and May 6, 2005, in exercise of the powers under Section 20(2) of the APGST Act read with Section 9(2) of the CST Act. The substance of the second respondent's stand is that the eligibility certificate issued by the Industries Department in favour of the petitioner mentions the petitioner's activity to be an activity of processing of cashew-nuts, but does not mention the processing of cashew kernel too, therefore, the turnover of the petitioner insofar it pertains to the sale of cashew kernel is not entitled for any consideration under the exemption G.O., referred to earlier. Hence, the present writ petitions with the respective prayers:
For the reasons stated above, it is prayed that this honourable court may be pleased to issue an appropriate writ or order or direction particularly in the nature of writ of mandamus declaring the action of the second respondent in withdrawing the benefit of exemption of Central tax granted to the petitioner through the final eligibility certificate by passing the impugned revision order in proceedings RV No. 42/05-06/A6 dated September 17, 2005 for the assessment year 2001-02 and demanding tax on the turnover of inter-State sale of cashew kernel processed by the petitioner in its unit as illegal, arbitrary and without authority of law and jurisdiction and set aside the same and also declare that the petitioner's product, viz., small white pieces (S.W.P) [cashew kernel pieces] is entitled for sales tax exemption in terms of the final eligibility certificate granted by the third respondent and pass such other order or orders as the honourable court may deem fit and proper in the circumstances of the case.
For the reasons stated above, it is prayed that this honourable court may be pleased to issue an appropriate writ or order or direction particularly in the nature of writ of mandamus declaring the action of the second respondent in withdrawing the benefit of exemption of Central tax granted to the petitioner through the final eligibility certificate by passing the impugned revision order in proceedings RV No. 44/05-06/A6 dated September 17, 2005 for the assessment year 2003-04 and demanding tax on the turnover of inter-State sale of cashew kernel processed by the petitioner in its unit as illegal, arbitrary and without authority of law and jurisdiction and set aside the same and also declare that the petitioner's product, viz., small white pieces (S.W.P) [cashew kernel pieces] is entitled for sales tax exemption in terms of the final eligibility certificate granted by the third respondent and pass such other order or orders as the honourable court may deem fit and proper in the circumstances of the case.
For the reasons stated above, it is prayed that this honourable court may be pleased to issue an appropriate writ or order or direction particularly in the nature of writ of mandamus declaring the action of the second respondent in withdrawing the benefit of exemption of Central tax granted to the petitioner through the final eligibility certificate by passing the impugned revision order in proceedings RV No. 43/05-06/A6 dated September 17, 2005 for the assessment year 2002-03 and demanding tax on the turnover of inter-State sale of cashew kernel processed by the petitioner in its unit as illegal, arbitrary and without authority of law and jurisdiction and set aside the same and also declare that the petitioner's product, viz., small white pieces (S.W.P) [cashew kernel pieces] is entitled for sales tax exemption in terms of the final eligibility certificate granted by the third respondent and pass such other order or orders as the honourable court may deem fit and proper in the circumstances of the case.
For the reasons stated above, it is prayed that this honourable court may be pleased to issue an appropriate writ or order or direction particularly in the nature of writ of mandamus declaring the action of the second respondent in withdrawing the benefit of exemption of Central tax granted to the petitioner through the final eligibility certificate by passing the impugned revision order in proceedings RV No. 2/05-06/A6 dated September 17, 2005 for the assessment year 2000-01 and demanding tax on the turnover of inter-State sale of cashew kernel processed by the petitioner in its unit as illegal, arbitrary and without authority of law and jurisdiction and set aside the same and also declare that the petitioner's product, viz., small white pieces (S.W.P) [cashew kernel pieces] is entitled for sales tax exemption in terms of the final eligibility certificate granted by the third respondent and pass such other order or orders as the honourable court may deem fit and proper in the circumstances of the case.
4. It appears that subsequent to the impugned order, i.e., on May 8, 2006, the Industries Department issued an amended eligibility certificate under the terms, of which admittedly, both the processing of cashew-nuts and cashew kernel, are recognised to be the activities, which are entitled for the benefits given under G.O. Ms. No. 108, referred to above.
5. Apart from that, on behalf of the Industries Department, the third respondent filed a counter accepting the claim of the petitioner that the processing of both cashew-nut and cashew kernel are activities, which are entitled for the benefits under G.O. No. 108.
6. The learned Government Pleader appearing for the first two respondents, however, argues that the certificate as originally issued in favour of the petitioner on August 10, 2000 mentions that only the process of cashew-nut is entitled to be extended the benefits under the G.O. Ms. No. 108, and not that of for cashew kernel and the amended certificate, which was issued on March 8, 2006 may not have the effect of giving the benefit of the G.O., to the petitioner retrospectively.
7. We regret our inability to accept the submission made by the learned Government Pleader appearing for the first two respondents. The certificate of eligibility is only a piece of evidence that the petitioner is entitled for the various activities carried on by him. For, the benefits conferred under G.O. Ms. No. 108, are not the benefits created by the certificate per se, but under the G.O. If the petitioner or, as a matter of fact, any other assessee, is entitled for the benefits under this G.O., or any other law for that matter, the same cannot be denied on the ground that some department or an officer of the State does not understand or recognise the correct legal position. The certificate, at best, is the understanding of the officer, who issued the same, about the applicability of the abovementioned G.O. At any rate, as on today, the Industries Department of the State, is also of the opinion that both the processes carried on by the petitioner are covered by the terms of the G.O.
8. In the circumstances, we do not see any merits in the submission made by the learned Government Pleader for commercial tax and the writ petitions are liable to be allowed.
9. Accordingly, all the four writ petitions are therefore, allowed as prayed for.
10. That rule nisi has been made absolute as above.