Decided on October 20,1993



Girija Jagannath, Member (A) - (1.) THIS appeal is filed against orders of the Appellate Deputy Commissioner (CT), Kurnool in Appeal No. 216 88 89 dated 4 -5 -1989 by which he upheld the orders of the C.T.O. Naidupet in Gl No. 11735/86 -87, dated 26 -10 -1988. The appellant M/s. P.V. Ragavulu & Co., Sullurpet are dealers in groundnuts, groundnut seeds, groundnut cake. The appeal is filed objecting to i) levy of enhanced rate of 1% under Sec. 5A of the APGST Act on a turnover of Rs. 42,35,750/ - relating to period prior to 1 -8 -1986 and ii) levy of additional tax on commission, freight charges, Kata coolie, loading and unloading charges incurred in connection with purchase of groundnut and groundnut seeds, The appeal also urged that the Appellate Deputy Commissioner merely adverted to the proceedings in a summary manner without giving any reasoned findings of his own.
(2.) IT is pleaded before us that the Section 5 -A was amended with effect from 1 -8 -1986 and therefore the higher rate of 1% as against the existing rate of 1/2% was applicable only for turnover relating to the period from 1 -8 -86 onwards. Secondly, it is urged that the aggregate of the following expenses amounting to Rs. 53,791/ - did not form part of the 'price' paid to the seller of the commodity and were Incurred by the appellant itself directly. The expenses are: Against expenses of Rs. 58,017/ -, the Counsel for appellant conceded that an amount of Rs. 4,225/ - was billed by the seller along with the price of the commodity, and therefore, was exigible to additional tax. It is to be considered whether the disputed turnover of Rs. 42,35,750/ - relating to period prior to 1 -8 -1986 was exigible to tax at 1% under Section 5A of the APGST Act and whether expenses amounting to Rs. 53,791/ - which were incidental to the purchase did not form part of the price paid by the appellant to the sellers, and therefore not exigible to additional tax?
(3.) THE first ground is decided in favour of the appellant and it is held that the enhanced rate of 1% is not applicable U/s. 5A to the turnover of the period prior to 1 -8 -1986 as the amendment to Section 5A enhancing the rate was only prospective. Rs. 42,35,750/ - is therefore taxable at the old rate of 1/2% regarding additional tax.;

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