Andhra HC (Pre-Telangana)
M/S.A.P. Paper Mills Limited ... vs The State Of Andhra Pradesh Rep. By Its ... on 21 January, 2014
Bench: G.Rohini, T.Sunil Chowdary
THE HONOURABLE MS. JUSTICE G.ROHINI AND THE HONOURABLE SRI JUSTICE T.SUNIL CHOWDARY
TAX REVISION CASE Nos.2 of 2001 and batch
21-01-2014
M/s.A.P. Paper Mills Limited Rajahmundry Rep. by its Vice President (Finance) Mr. Sudhir Bhansali
The State of Andhra Pradesh Rep. by its State Representative Before the Sales Tax Appellate Tribunal Nampally Hyderabad .
Counsel for the petitioner :Sri S.Dwarakanath
Counsel for the Respondent : Sri P.Balaji Varma
Special Standing Counsel for Commercial Taxes
<Gist :
>Head Note:
? Cases referred:
1. 2007 (4) SCC 30
2. 1975 (4) SCC 745
3. 1993 (67) ELT 25 (SC)
4. (2004) 7 SCC 642
THE HONBLE Ms. JUSTICE G.ROHINI
And
THE HONBLE SRI JUSTICE T.SUNIL CHOWDARY
TAX REVISION CASE Nos.2, 3, 4, 5 and 6 of 2001
Dated: 21.01.2014
COMMON ORDER:(Per Honble Ms. Justice G.Rohini) M/s. A.P. Paper Mills Limited, Rajahmundry, a registered dealer under the A.P. General Sales Tax Act, 1957 (for short the A The facts in brief are as under:
The revision petitioner is engaged in the business of manufacture and sale of paper. In the course of its business the peti However, the Deputy Commissioner revised all the said five assessments and got the turnover relating to purchase of burnt li Whether the petitioner is liable to pay purchase tax under Section 6-A of the A.P. General Sales Tax Act in respect of burnt We have heard the learned counsel for both the parties in detail.
As could be seen from the order under Revision, the contention on behalf of the petitioner before the Tribunal below was th The said contention was not accepted by the Tribunal holding that there was no proof to hold that the selling dealers had co Though the finding recorded by the Tribunal that there was no proof to hold that the selling dealers had collected the tax f However, Sri P.Balaji Varma, the learned Senior Standing Counsel for Commercial Taxes appearing for the respondents sought t Before adverting to the rival submissions noticed above, it is necessary to look into the relevant provisions of the APGST A Section 5 of the APGST Act which provides for levy of tax on sale or purchases of goods and Section 6 which provides for ta
5. Levy of tax on sales or purchases of goods:-
(1) Save as otherwise provided in this Act every dealer shall pay tax under this Act for each year on every rupee of his tur (3) For the purpose of this section and the other provisions of this Act, the turnover which a dealer shall be liable to pay (4) The taxes under this section shall be assessed, levied and collected in such manner, as may be prescribed. Provided that -
(i) in respect of the same transaction, the buyer or the seller but not both, as determined by such rules as may be prescrib
(ii) where a dealer has been taxed in respect of the purchase of any goods, in accordance with the rules referred to in clau (sub-section (1) was substituted for sub-sections (1) & (2) by Act No.4 of 1989)
6. Tax in respect of declared goods:- Notwithstanding anything contained in section 5, the sales or purchases of declared goo Provided that where any such goods on which a tax has been so levied are sold in the course of inter State trade or commerce Section 6-A which provides for levy of tax on turnover relating to purchase of certain goods may also be extracted hereund 6A. Levy of tax on turnover relating to purchase of certain goods:- Every dealer, who in the course of business,--
(i) purchases any goods (the sale or purchase of which is liable to tax under this Act) from a registered dealer in circumst
(ii) purchases any goods (the sale or purchase of which is liable to tax under this Act) from a person other than a register
(a) consumes such goods in the manufacture of other goods for sale or consumes them otherwise, or:
(b) disposes of such goods in any manner other than by way of sale in the State or.
(c) despatches them to a place outside the State except as a direct result of sale or purchase in the course of inter State shall pay tax on the turnover relating to purchase aforesaid at the same rate at which but for the existence of the aforement A reading of Section 6-A shows that every dealer who in the course of business purchases any goods, the sale or purc Section 2 (f) of the APGST Act defines declared goods as goods declared under Section 14 of the Central Sales Tax Act, 195 It is also not in dispute that burnt lime falls under Item 212 of the First Schedule to APGST Act in respect of which sing A copy of G.O.Ms.No.2566, dated 11.06.1980 is placed before us and a perusal of the same shows that it was issued in exercis In view of the sales tax exemption so granted to the dealers from whom the petitioner purchased burnt lime, the learned coun Placing reliance upon PEEKAY RE-ROLLING MILLS LIMITEDS case (1 supra) it is vehemently contended by the learned counsel for On the other hand, it is contended by the learned Senior Standing Counsel for Commercial Taxes that the exemption so granted It is further contended by the learned Senior Standing Counsel that the ratio laid down in PEEKAY RE-ROLLING MILLS LIMITED We have carefully gone through the decisions in PEEKAY RE-ROLLING MILLS LIMITEDS case (1 supra) and M.K. KANDASWAMYS case In PEEKAY RE-ROLLING MILLS LIMITEDS case (1 supra) the appellant therein is a registered dealer under the Kerala General Sa Under the above noticed facts and circumstances, having formulated the question as to whether the tax sought to be levied un It is no doubt true that in the above said decision the Supreme Court considered the tax liability with regard to declared Coming to the decision of M.K. KANDA SWAMYS case (2 supra) in which the Supreme Court considered the interpretation and val Section 7-A itself is a charging section. It creates a liability against a dealer on his purchase turnover with regard On a careful reading, it is clear to our mind that in M.K. KANDA SWAMYS case (2 supra) the question as to whether in case o In fact PEEKAY RE-ROLLING MILLS PRIVATE LIMITEDS case (1 supra) was decided taking note of the ratio laid down in M.K. KAND For the aforesaid reasons, we find force in the submission of the learned counsel for the petitioner that the ratio laid dow Accordingly, following the decision in PEEKAY RE-ROLLING MILLS PRIVATE LIMITEDS case (1 supra), we hold that the petitioner In the result, the orders of the Tribunal below as well as the Appellate Deputy Commissioner are hereby set aside and all th Consequently the miscellaneous petitions, if any, pending in all the Revision Cases shall stand closed.
_____________ G.ROHINI, J _________________________ T.SUNIL CHOWDARY, J Date: 21.01.2014