The Court affirms that statutory notifications under Section 9(1) of the Andhra Pradesh General Sales Tax Act remain valid until explicitly rescinded.
Hyderabad, July 24, 2026 – In a significant ruling, the Telangana High Court dismissed a tax revision case filed by the State of Andhra Pradesh, thereby maintaining the concessional tax rate on audio cassettes distributed by M/s. Mayuri Film Distributors. The Division Bench, comprising Justices P. Sam Koshy and Suddala Chalapathi Rao, upheld the decision of the Sales Tax Appellate Tribunal (STAT) which favored the respondents, M/s. Mayuri Film Distributors, in their appeal against a higher tax levy.
The case revolved around the applicability of concessional tax rates under the Andhra Pradesh General Sales Tax Act, 1957. The crux of the issue was whether the concessional tax rate on audio cassettes, classified as electronic goods under Item No. 16.1 by the Electronics Commission of India and covered by G.O.Ms.No.252, remained valid despite the introduction of Entry 10 in the First Schedule to the Act, which increased the tax rate to 12% effective January 1, 2000.
The State contended that the introduction of Entry 10 automatically nullified the concessional rate provided by G.O.Ms.No.252, as it was not expressly rescinded. However, the High Court found otherwise, emphasizing that a statutory notification issued under Section 9(1) operates independently until expressly rescinded, withdrawn, or superseded. The Court noted that G.O.Ms.No.252 had not been rescinded and, therefore, continued to be effective, granting M/s. Mayuri Film Distributors the benefit of the concessional rate.
The Bench underscored the binding nature of statutory notifications and classifications made by competent authorities like the Electronics Commission of India. The Court referenced previous judgments, including the Supreme Court's decisions in Concap Capacitors and Dunlop India Limited, to affirm that statutory exemptions and notifications are distinct sources of law that continue to operate until specifically revoked by a government order.
The ruling is a significant affirmation of the binding nature of statutory notifications and provides clarity on the applicability of concessional tax rates amid statutory amendments. It underscores the importance of explicit government action in rescinding notifications to nullify their effect.
Bottom line:-
Tax law - A government notification granting concessional tax rates under Section 9(1) of the Andhra Pradesh General Sales Tax Act continues to operate unless expressly rescinded, even if subsequent amendments to the statutory entries occur.
Statutory provision(s): Andhra Pradesh General Sales Tax Act, 1957 Section 9(1), G.O.Ms.No.252, G.O.Ms.No.910, Entry 10 of the First Schedule, Section 5AA, Trademarks Act, 1999.
State of A.P. v. M/s. Mayuri Film Distributors, (Telangana)(DB) : Law Finder Doc id # 2949379
