J. Shyam Sundar Rao, Chairman - (1.) THIS is an appeal filed by M/s. Bharat Dynamics Limited, Kanchan Bagh, Hyderabad against the order of Deputy Commissioner (CT), Punjagutta Division, Hyderabad in Appeal No. C/84/2000 -01, dated 20 -12 -2000 dismissing the appeal filed against the final assessment orders passed by the Commercial Tax Officer, Malakpet Circle, Hyderabad. The appellant disputed rate of tax on a turnover of Rs. 8,84,733/ -. The appellant M/s. Bharat Dynamics Limited, Kanchan Bagh, Hyderabad. It is on the rolls of Commercial Tax Officer, Malakpet Circle, Hyderabad. For the assessment year 1993 -94, the assessing authority passed the final assessment order as indicated below:
(2.) A demand notice in form "B3" is issued accordingly. Aggrieved by the above order, the appellant preferred an appeal before the Appellate Deputy Commissioner (CT), Punjagutta Division, Hyderabad. It disputed the levy of tax on the turnover of Rs. 7,09,650/ - relating to Launch Release Mechanism to RCI, a research unit working under Ministry of Defence, Government of India. The said mechanism is a development product for research purposes consisting mostly mechanical parts along with a small portion of electronic items and does not contain any arms, ammunition or explosives. The Assessing Authority ought to have taxed the item as unclassified goods falling under the Seventh Schedule of the APGST Act taxable @ 10% and not at 16% treating it as goods falling under Entry 8 of the First Schedule of the APGST Act, 1957.
(3.) THE Appellate Authority also erred in dismissing the appeal on a turnover of Rs. 1,75,083/ - @ 10% as against the correct rate of tax of 4% applicable to iron and steel scrap. At the time of hearing of the appeal, Memo has been filed by the counsel for the appellant not pressing levy of tax at 10% on a turnover of Rs. 1,75,083/ -, hence the same is recorded.;