GOVERNMENT OF ANDHRA PRADESH

COMMERCIAL TAXES DEPARTMENT

Office of the
Commissioner of Commercial
Taxes,
Andhra Pradesh:: Edupugallu
Near Vijayawada
CCT’s Ref. No. LI(2)/170/2014 Date:-18-10-2017

Sub:- A.P. Re-organization Act, 2014 - Collection of arrears related

to the State pre-partition period i.e., upto 1-6-2014 - Certain
instructions Issued – Compliance Report – Called for -
Regarding.

Ref:- 1. This Office letter in CCT’s Ref.No.LI(2)/170/2014, dated 27-

09-
2017.
***

The attention of all the 13 territorial Deputy Commissioners (CT) /

Joint Commissioners (ST), in the State, is invited to the reference cited

above wherein it was clarified that

“arrears and deemed loans advanced by way of deferred of the tax

liabilities accrued in the State pre-partition period i.e., existing as on 2nd

day of June, 2014. Of around Rs.9425 crores of arrears were available

and similarly a sum of Rs.2997 crores of deemed loans were available as

on 2-6-2014. The collection and distribution of the deemed loans

(deferred tax liabilities) are covered under Section 51 of the A.P. Re-

organization Act, 2014 (‘Act’ for short). The issues regarding the collection

of these deemed loans are yet to be adjudicated by the Hon’ble High Court

of Judicature at Hyderabad in the W.PNo.9482 of 2016 of M/s. Bhagiratha

Chemicals and Industries Limited, Near Ongole and in the W.P.No. 33666

of 2016 and 31643 of 2017 filed by M/s. Hyderabad Industries Limited,

Kondapalli. In these 2 cases, the beneficiary units are located in the State

of A.P. and the administrative Offices are currently available both in the

residuary State of A.P. and in the residuary State of Telangana.

However, the collection and distribution of the arrears of Rs.9425

crores is covered under Section 50 read with Section 47 of the Act. It is

also to be noted that the distribution aspect of the amounts collected is not

explicitly stated in the said Section 50 of the Act. However, that is held to
be not material in the light of the overall provisions of collection and

distribution of the arrears (assets) available in Section 47 (part VI) of the

Act. The same view is held by the Hon’ble Supreme Court of India in the

case of A.P. State Counsel for Higher Education Vs Union of India & Others

in Civil Appeal No.3019 and 3020 of 2016, dated 18-3-2016 (para 25).

Thus, in the light of this authoritative pronouncement of the ratio by the

Apex Court, the residuary State of A.P. is entitled to receive 58% of the

amounts collected from out of the Rs.9425 Crores. The collection might be

made by any of the 2 residuary States of the composite State of A.P. The

collection made by any residuary State is deemed to be the collection by

both the residuary States of A.P. and Telangana and hence, it is required to

be distributed between two residuary States as per the population ratio.

This view is also orally accepted by the Advocate General, A.P. on 22-9-

2017.

In the light of the above factual and legal matrix, the territorial Dy.

Commissioners (CT) / Joint Commissioners (ST) are requested to take up

following action immediately Under Section 50 of the Act.

1) Identify the dealers in arrears in their Divisions related to the

composite State of A.P. and their Office is presently located also in

the residuary State of A.P.

2) Issue them a notice requiring them to pay all the arrears payable to

the composite State of A.P.

However, no compliance report is received from the Deputy

Commissioners (CT) / Joint Commissioners (ST) so far, especially from

Vijayawada-I and II Divisions where it is expected to be with many such

defaulters.

The Deputy Commissioners (CT) / Joint Commissioners (ST) shall

note that this is a high priority item and brooks no delay. The Government

of A.P. has, inter alia, specifically directed us to do this work on high

priority basis and the same would be reviewed by them shortly.

Therefore, they should send compliance report within 10 days.

 Sd/- G. Venkateswarlu,
Additional
Commissioner(CT),
Legal & Legal Affairs
To

All the 13 territorial Deputy Commissioner (CT) / Joint Commissioners (ST)

in the State of A.P.

Copy to the Chief Commissioner of State tax, A.P., at Edupugallu.

GOVERNMENT OF ANDHRA PRADESH

COMMERCIAL TAXES DEPARTMENT

From: To:
Dr.P.Satya Kumar, M.Sc.Tech, Ph.D., The Joint Commissioner (ST),
Deputy Commissioner(State Tax), Vizianagaram division,
Vizianagaram division, Vizianagaram.
Vizianagaram.

Rc. No /2017, A6 dt. 24.10.2017

Sir,
Sub:- A.P. Re-organization Act, 2014 - Collection of arrears related to the
State pre-partition period i.e., upto 1-6-2014 - Certain instructions
Issued – Compliance Report – Called for - Report submitted -
Regarding.

Ref:-1.This Office letter in CCT’s Ref.No.LI(2)/170/2014, dated 27-09-

2017.
2. CCT’s Ref. No. LI(2)/170/2014 Dt.18-10-2017.

3. Mail received from the Joint Commissioner(ST) Vizianagaram.

***

I invite kind attention to the subject and reference cited. I submit that
there is one case relating to M/s.Nagarjuna Agrichem Limited , Arinama Akkivalasa,
Srikakulam Dist.

On bifurcation of the telangana State the assessment file was received from CTO Srinagar colony
Circle Hyderabad
On bifurcation of state of telangana, the deferment amount ripe for payment for
september 2015. Notice issued to the dealer and the dealer filed an objection stated
that the case is pending.

2001-02 APGST and CST

2002-03 APGST and CST

Nagarjunaagrichem Ltd, Srikakulam The dealer filed W.P No 3189/2015 against the
notice issued by Tenalangana State C T Depet, stating that as per Sec 51 of APRA Act
he is liable to pay the deferred amont to the residual State of A.P., where the Industrial
Unit is located. Since the dealer himself has admitted int the W.P that the deferred tax
has to be paid to the State of A.P ,counter will be filed accordingly. The honourable
High Court, Hyderabad issued diredtion to the petitioner vide W.P.No 31989 of 2015 dt
26.10.2015 to deposit Rs. 7504896/- with the Registrar, High court of Judicature at
Hyderabad.

2003-04 APGST and CST

In response to the notice the dealer filed a letter stating that the previous Writ.petition
are pending befor the Hon'ble High Court of Hyd. The company is waiting for the
directions of High Court of Andhrapradesh.