STANES TYRES & RUBBER PRODUCTS LTD. Vs. THE STATE OF ANDHRA PRADESH
LAWS(ST)-1993-3-1
SALES TAX TRIBUNAL
Decided on March 05,1993

Appellant
VERSUS
Respondents

JUDGEMENT

R. Bayapu Reddy, Chairman - (1.) THESE two appeals are filed by the same appellant questioning the orders of the revisional authority (Deputy Commissioner (C.T.), Vijayawada dated 7 -6 -1992 by which the orders of the assessing authority (Commercial Tax Officer, Company circle, Vijayawada) Were revised subjecting the respective disputed turnovers relating to the value of vulcanizing solution used in the execution of works contract to tax. The particulars of the present two appeals are as follows:
(2.) THE appellant is a dealer carrying on business in tyres retreading and selling tyres etc. During the two relevant Assessment Years the disputed turnovers, which relates to the sale value of vulcanising solution used by the appellant in the work of retreading the tyres, were exempted from tax by the assessing authority. The Deputy Commissioner took up the matters in revision and subjected the disputed turnovers to tax on the ground that the appellant had used vulcanising solution in the execution of the works contract for the purpose of retreading the tyres and as such the said goods shall be deemed to have been sold in the execution of the works contract and therefore liable to be assessed to tax the appellant his preferred the present appeals questioning the said revisional orders contending that vulcanising solution was used only as an adhesive for bonding the thread rubber flap to the tyres, that such solution gets evaporated in the process of retreading that therefore such solution is not transferred by way of sale to the customers and no such solution remarks after such retreading process is over and that therefore it cannot be considered as deemed sale of such solution in the execution of the works contract and so not liable to be assessed to tax. As both the appeals are filed by the same appellant and same questions of law are Involved for consideration, they are heard together and are being disposed off by a common order.
(3.) THE point for consideration in the present appeals is whether the disputed turnovers relating to the value of vulcanising solution used by the appellant in the execution of works contract relating to retreading the tyres are not exigible to tax?;


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