SRI SAI MARKETING Vs. STATE OF ANDHRA PRADESH
SALES TAX TRIBUNAL
Sri Sai Marketing
STATE OF ANDHRA PRADESH
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J. Shyam Sundar Rao, Chairman -
(1.) THIS is an appeal filed against the Revisional orders of Deputy Commissioner (CT), Abids Division, Hyderabad in Re. No. 03/2004 -05/APGST, dated 28 -6 -2004. The appellant is M/s. Sri Sai Marketing, Hyderguda, Hyderabad. The appellant deals in plastic articles. The Commercial Tax Officer, Narayanguda Circle passed final assessment order for the assessment year 1999 -2000 by his order dated 22 -09 -2000. The Commercial Tax Officer while passing the order treated the plastic moulded stands dealt by the appellant as plastic goods falling under Entry 187 of First Schedule to the APGST Act.
(2.) HOWEVER , the Deputy Commissioner (CT), Abids Division, Hyderabad having observed that the order passed by the Commercial Tax Officer is prejudicial to the interests of revenue, by virtue of powers conferred under Section 20(2) of the APGST Act, issued pre -revision show cause notice proposing to levy Turnover Tax (ToT) at 1% observing that the plastic moulded stands dealt by the appellant would fall under Entry 2 of First Schedule to the APGST Act at 16% and the consequently second sales attracts ToT at 1%, calling for the objections of the assessee. The assessee filed its objections stating that the Plastic Moulded Stands would fall under Entry 187 of the First Schedule. However, the Deputy Commissioner rejected the contentions and confirmed the levy of ToT @ 1% on the turnover of Rs. 22,44,796 from 1 -1 -2000 to 31 -3 -2000. Aggrieved by the above revision, the appellant preferred the present appeal before this Tribunal. In the appeal grounds, it has been contended as follows:
(3.) THE orders passed by the Deputy Commissioner are erroneous. The Commercial Tax Officer correctly observed that the plastic stands dealt by the appellant would fall under Item 187 of the First Schedule and accordingly exempted the sales as the same constituted second and subsequent sales. The ToT was also exempted on such sales by virtue of G.O.Ms. No. 911, dated 31 -12 -1999. The Revisional Authority erroneously with a view to levy Turnover Tax has classified the same as covered by Entry 2 of the First Schedule. The appellant submits that Plastic Moulded Stands are plastic goods covered by Entry 187. The said entry is a specific entry which excludes only two commodities but includes all other commodities made of plastic. The Hon'ble Supreme Court in A. Nagaraju Brothers Vs. State of Andhra Pradesh : (1994) 95 STC 1) observed that classification of VIP suit -cases when came up for consideration, applied the test of predominance and held them as articles of plastic. In the present case also the plastic moulded stands are predominantly made of plastic by the method known as Injection Moulding and therefore should be classified as articles of plastic covered by Item 187 of the First Schedule.;
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