GURURAJ MINI ROLLER FLOUR MILLS Vs. THE STATE OF ANDHRA PRADESH
SALES TAX TRIBUNAL
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R. Bayapu Reddy, Chairman -
(1.) THESE two appeals are filed by the same appellant questioning the respective orders of the Appellate Dy. Commissioner, who confirmed the orders of the assessing authority regarding the rate of additional tax levied on the disputed turnover. The particulars of the present appeals are as follows:
(2.) THE appellant is a dealer in wheat and wheat products. The assessing authority levied additional tax and surcharge besides the regular tax on the net turnover of Rs. 79,19,110/ - during the assessment year 86 -87 and a turnover of Rs. 89,44,549/ - during the assessment year 87 -88. The additional tax was levied at the rate of 1% u/s. 5 -A as the total turnover during each year exceeded Rs. 50 lakhs. The appellant filed appeal before the Appellate Deputy Commissioner questioning the rate of additional tax besides some other aspects, which are now not concerned in the present appeals, contending that the rate of additional tax shall be 1/2% on a turnover of Rs. 50 lakhs during each year and the balance turnover exceeding Rs. 50 lakhs alone can be subjected to additional tax at 1% u/s. 5 -A. The Appellate Dy. Commissioner rejected such contention and confirmed the orders of the assessing authority regarding rate of additional tax. The present appeals are filed before this Tribunal questioning such orders of the Appellate Dy. Commissioner regarding rate of additional tax. As the point involved for consideration in both the appeals is the same, they are heard together and are being disposed of by a common order. The point for consideration is whether the rate of additional tax on the respective net turnovers during both the assessment years shall be 1% as opined by the lower authorities?
(3.) THE lower authorities held the view that as the total turnover during each assessment year exceeded Rs. 50 lakhs, the additional tax on such turnover shall be at 1% as contemplated u/s. 5 -A(b) of APGST Act. The contention of the appellant however appears to be that additional tax can be levied only at 1/2% on a turnover of Rs. 50 lakhs as per Section 5 -A(a) and that the balance turnover over and above Rs. 50 lakhs alone can be assessed to tax at 1% under clause (b) of Section 5 -A. But there is no substance in such contention of the appellant. Section 5 -A(a) states that the additional tax shall be at the rate of 1/2 paise on every rupee where the total turnover for the year is Rs. 3 lakhs or more but less than Rs. 50 lakhs, while clause (b) of Section 5 -A states that the rate of additional tax shall be 1 paise on every rupee where the total turnover for the year is Rs. 50 lakhs or more, but less than Rs. 1 crore. It is not stated in the said provisions of Section 5 -A that additional tax shall be levied at 1/2% on a turnover upto Rs. 50 lakhs and that the balance turnover over and above Rs. 50 lakhs alone shall be subjected to additional tax at 1%. The provisions of Section 5 -A(a) & (b) clearly show that when the total turnover is less than Rs. 50 lakhs, the additional tax shall be at 1/2% on such turnover and that when the turnover is Rs. 50 lakhs or more but less than Rs. 1 crore, such entire turnover shall be assessed to additional tax at 1%. Therefore the contention of the learned Counsel for the appellant regarding the rate of additional tax cannot be accepted and there are no valid reasons to Interfere with the orders of the lower authorities. In the result the appeals are dismissed.
Dictated to the Stenographer, transcribed by him and pronounced in the Open Court on this the 6th day of December, 1993.;
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