Decided on January 31,1998

Bhojanapalli Nageswara Rao Appellant


M.Ramakrishna, Chairman - (1.) THIS appeal has been filed by M/s. Bhojanapalli Nageswara Rao, Narasaraopet, against the orders of the Appellate Deputy Commissioner (CT), Guntur, dated 27.11.1996 in Appeal No. 113/96 -97 filed against the assessment orders of the Deputy Commercial Tax Officer, Ramireddypet, Narasaraopet in GI No. 21167/94 -95, dated 16.10.1996. The disputed turnover is Rs. 1,56,563/ -. The disputed turnover related to sale of chimneys used with kerosene lamps. The appellant claimed exemption on the ground that sales of chimneys were exempted under G.O.Ms. No. 1238, Revenue dated 31.12.1992. The claim was rejected on the ground had the chimneys been treated as accessories of lamps they would have been deleted from item 123 of the First Schedule by virtue of the above G.O. and that the chimneys were liable to tax under entry relating to glass and glassware at item 123. The appeal was dismissed on the ground that chimney is not an accessory of hurricane lantern and kerosene lamp and that the lamps can be operated without chimney. Hence, this appeal.
(2.) THE point for consideration is whether the appellant is entitled to exemption. G.O.Ms. No. 1238, Revenue dated 31.12.1992 reads as follows: "In exercise of the powers conferred by Sub -section (1) of Section 9 of the Andhra Pradesh General Sales Tax Act, 1957 (Act VI of 1957) the Governor of Andhra Pradesh hereby exempts from the tax payable under the said Act on the sale of Kerosene Stoves, Lights, Lamps including Hurricane Lanterns and their accessories thereof manufactured and sold in the State. This notification shall come into force with effect from the date of its publication in Andhra Pradesh Gazette."
(3.) ITEM 123 of the First Schedule to the APGST Act related to glass and glassware which includes chimneys, lamps and lanterns. The contention of the assessing authority is that had the chimneys been treated as accessories of lamps they would have been deleted from entry 123. This is not a sound observation. The intention is to grant exemption by deleting the item in any of the entries in the Schedules is reflected only in the case where such item has to be included in the Fourth Schedule. Commodities are not deleted from the Schedules nor the rates of tax mentioned in the Schedules are amended when Notification is issued to grant exemption or concessional rate of tax on any item included in the Schedules. For example, motor cars were liable to tax at the rate of 10 paise in the rupee under entry 1 of First Schedule, while Notification G.O.Ms. No. 130, Revenue dated 14.2.1989 they were liable to tax at four paise in the rupee. On account of the G.O., entry 1 was not amended. Cycles and accessories and parts were liable to tax at six paise in the rupee under entry 19 of the First Schedule while they were exempt from tax under G.O.Ms. No. 1176, Revenue dated 17.12.1987 without deletion of the entry and they were liable to tax at 2 paise in the rupee by G.O.Ms. No. 1087, Revenue dated 6.1.1993 without amendment to the rate of tax mentioned in the Schedule.;

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