Quantum Engineers Vs State of Andhra Pradesh (Andhra Pradesh High Court)
Andhra Pradesh High Court addressed a tax revision petition filed by Quantum Engineers challenging the VAT Appellate Tribunal’s decision that upheld earlier orders imposing a 14.5% tax rate on inter-state sales due to non-submission of ‘C’ forms. Quantum Engineers, a business dealing in machinery spares and safety equipment, argued that the disputed sales involved cotton/hosiery hand gloves taxed at 4% under Schedule IV of the VAT Act, 2005. Since no exemption was claimed, the petitioner contended that ‘C’ forms were irrelevant. Despite this, the authorities assessed the sales at 14.5%, leading to multiple appeals, all dismissed before reaching the High Court.
The High Court found that the authorities and the Tribunal failed to properly evaluate the applicability of the 4% tax rate under the schedule. Observing that ‘C’ forms are only required for exemption claims, the court concluded that the petitioner had complied with tax obligations under the Act. Consequently, the court set aside the Tribunal’s order and remanded the case to the assessing authority for fresh evaluation. The assessing authority has been directed to resolve the matter within four weeks, ensuring the petitioner is given an opportunity for a hearing.
