Decided on February 13,1998



Girija Jagannath, Member (A) - (1.) THIS is an appeal filed against the orders of the Deputy Commissioner(CT), Nizamabad Division, Nizamabad, in proceedings No. R.R. No. 4/93 -94 Dt. 21.8.1993/R.C. No. Ka2/901/93, revising the orders of the Commercial Tax Officer, Sangareddy, in G.I. No. 12651/88 -89 dated 1.8.1989. The appellant was taxed on net turnover of Rs. 80,420/ - at the rate of 6 percent even though as per the assessment order the turnover related to sale of electrodes and was taxable at the higher rate of 8 per cent. Accordingly the Deputy Commissioner revised the assessment by which the appellant is now aggrieved.
(2.) THE point to be considered is, whether the rate applicable to a turnover of Rs. 80,420/ - under the A.P.G.S.T. Act is 8% vide entry 141 of I Schedule or not? According to the counsel for the appellant, the assessing authority wrongly referred to the turnover as relating to sale of 'electrodes' instead of sale of 'accessories' to welding equipment machinery. He contended that the assessee dealt in electrodes which it locally purchased, to the tune of Rs. 16,73,344 -00 Ps. and also dealt in welding transformers, generators, welding cables, welding holders and spare parts. This fact was noted in the assessment order. Therefore, the assessing authority was right in taxing the turnover of Rs. 80,420/ - as accessories to machinery at 6 per cent vide entry 83 of the First Schedule to the A.P.G.S.T. Act. The revising authority ought not have been from the copy of purchase invoice submitted before him that the turnover in question covered purchase of accessories to welding equipment. There was no basis for revision at all and the revising authority was not correct in classifying the sale turnover of Rs. 80,420/ - relating to purchase of accessories for Rs. 69,310 -50 Ps. at a per cent vide entry 141 relating to 'welding electrodes and Rods'.
(3.) THE State Representative strongly defended the orders of revision and urged that the turnover in question related only to welding electrodes and rods and was squarely covered by entry 141 of the First Schedule to the Act.;

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