DECCAN CEMENTS LIMITED Vs. THE STATE OF ANDHRA PRADESH
LAWS(ST)-1993-11-2
SALES TAX TRIBUNAL
Decided on November 30,1993

Appellant
VERSUS
Respondents

JUDGEMENT

Girija Jagannath, Member (A) - (1.) THIS appeal is filed against the orders of the Appellate Dy. Commissioner (CT) Punjagutta Division, Hyderabad in appeal No. B/157/87 d/15 -2 -90, partly upholding the orders of the Commrl. Tax Officer, Company Circle III, Hyderabad in assessment No. 24856/85 -86 d/30 -1 -87. The appellant is a manufacturer dealer in cement and the disputed turnover is Rs. 82,568/ - comprising sale proceeds of a second hand car and van.
(2.) THE Commrl. Tax Officer brought to tax without citing any grounds, the disputed amount of Rs. 82,568/ - being proceeds of sale of a second hand jeep for Rs. 42,568/ - and of a second hand van for Rs. 40,000/ -. The Appellate Dy. Commissioner upheld the Commrl. Tax Officer's action in taxing' Sale of old Vehicles', relying on the decision of the Madras High Court in the case of State of Tamil Nadu vs. Sri Veran State (57 S.T.C. p. 11). The Appellate Dy. Commissioner held that second hand cars area different commercial commodity from new automobiles, and therefore no exemption is due on the ground of second sales. It is now to be considered whether the disputed turnover of Rs. 82,568/ - being proceeds of sale of old vehicles is exigible to tax?
(3.) THE vehicles are second hand, and were originally purchased by the appellant within the State and suffered tax. This fact is not disputed even by the Comml. Tax Officer. So, it is only to be considered, in the light of the Madras High Court decision in the case of M/s. Velan Stores (57 S.T.C. 11) whether used cars are a different commodity from first hand cars? Counsel for appellant contended that the decision of Madras High Court in, 57 S.T.C. p. 13 in the case of Dy. Commissioner (CT) Coimbatore vs. G. Ramaswamy & Co., in which the earlier decision in, 57 S.T.C. 11 was referred and discussed is favourable to the appellant, and that the claim of exemption on second sales is allowable.;


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