COROMANDAL PAPER PRODUCTS Vs. STATE OF ANDHRA PRADESH
SALES TAX TRIBUNAL
Coromandal Paper Products
STATE OF ANDHRA PRADESH
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K. Ashok Babu, Chairman -
(1.) THE short point that arises for consideration in this appeal is whether the supply of covers/envelopes with printing matter thereon with 90 GSM paper is a transaction of 'sale' as classified by the Authority for Clarification & Advance Ruling, Hyderabad, or a transaction of 'works contract' as contended by the appellants? The appellants are manufacturers of printed covers/envelopes. On receipt of orders from the Commissioner of Printing, Stationery and Stores Purchase, Government Central Press, Chenchalguda, Hyderabad, they have supplied covers/envelopes of different sizes printed with statutory matter as required for conduct of Panchayat Raj Elections. So, they have sought for a clarification from the Authority for Clarification & Advance Ruling, whether the above transaction is a 'sale' or 'works contract'.
(2.) ON a careful consideration of the provisions of the APVAT Act, 2005 and the APVAT Rules, 2005 and HSN Codes notified by the Government, the Id. Authority for Clarification & Advance Ruling ruled that the applicants having filed their quotation in response to the Tender Enquiry dt. 5.5.2006 made by the Commissioner of Printing, Government of Andhra Pradesh and got an order for supply of certain quantities of covers/envelopes of different sizes with an agreed rate per 1000 covers/envelopes on condition to use 90 GSM paper and printing of matter on those envelopes, it was purely a transaction of 'sale' but not a transaction of 'works contract' and was liable to tax accordingly. Aggrieved by such a ruling, the appellant has preferred the appeal on hand contending, inter alia, that the Id. Authority for Clarification & Advance Ruling have not passed a speaking order and not having discussed about the marketability or otherwise of the covers/envelopes which cannot be sold in the open market to others except the Commissioner of Printing, Stationery & Stores Purchase for usage in the elections for the posts of Sarpanch & Ward Members of Gram Panchayats, it was a 'works contract' and not a 'sale' and that the impugned ruling is not sustainable and is liable to be set aside.
(3.) SAMPLES of covers/envelopes displayed during the course of arguments and two envelopes filed before the Tribunal do reveal that the covers/envelopes printed by the appellants are light and dark brown in colour super scribed with bold letters printing material relating to the 'Elections to the posts of Sarpanch and Ward Members of Gram Panchayats, Covers for unused and damaged paper seals, Date of Election... Polling Station No. & Name....., Election to Sarpanch and Ward Member of... Ward No. of.....and Name of the Mandal....' and such covers/envelopes cannot be sold for general public for using them even by pasting a white paper thereon. Since all the envelopes supplied by the appellants to the Commissioner of Printing, Stationery and Stores Purchase, in response to the tender dt. 5.5.2006 being for the specific purpose of usage in the elections to the posts of Sarpanch and Ward Members of Gram Panchayats, it is a 'works contract' and not a 'sale' as ruled by the Id. Authority for Clarification and Advance Ruling.;
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