PREMIER ENGINEERING ENTERPRISES Vs. STATE OF ANDHRA PRADESH
SALES TAX TRIBUNAL
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M.Ramakrishna, Chairman -
(1.) THESE two appeals have been filed by M/s. Premier Engineering Enterprises, Balanagar, against the orders of the Deputy Commissioner(CT), Hyderabad (Rural) Division, Hyderabad revising the orders of the Commercial Tax Officer, Hydernagar Circle, Hyderabad. The details are as follows:
The turnovers on which the rate of tax is disputed relates to sale of copper tubes. In the original assessment these turnovers are assessed to tax as articles made from copper under entry 150 of the First Schedule to the APGST Act. The Deputy Commissioner (CT), Hyderabad (Rural) Division, revised the assessment bringing the turnovers to tax as parts of refrigerators under entry 2 of the First Schedule to the Act. Hence this appeal.
(2.) THE point for consideration is whether copper tubes sold by the appellant would not fall under entry 2 of the First Schedule to APGST Act. The assessing authority assessed the turnovers to tax under entry 150 of the First Schedule to the APGST Act as relating to sales of articles made from copper. The revising authority treated the turnovers as sale of copper parts of refrigerators falling under entry 2 of the First Schedule liable to tax at 10 per cent. After receipt of the reply to the show cause notice issued proposing to levy tax on disputed turnovers under entry 2 of the First Schedule inspection of the business premises was organised on 12.3.1996. The revising authority observed that the appellant made a statement at the time of inspection admitting that the copper tubes/pipes sold by the appellant were exclusively used in refrigeration/Air -conditioner equipments. The revising authority observed that the appellant collected and paid taxes on the sale of the said goods at the rate of 10 per cent in the year 1994 -95 and 16 per cent in the year 1995 -96 treating the goods as refrigeration and Air conditioner parts and accessories and thus the appellant was admittedly engaged in selling the refrigeration and Air conditioner parts and spares.
(3.) AT the time of hearing the Authorised Representative filed a copy of the statement given by M/s. Premier Refrigeration Enterprises a successor to the appellant concern. In that statement dated 12.6.96 it was stated as follows: - -
We are purchasing the following goods from local and outside dealers:
(1) Ammonia gas, Freon gas, Florin gas, which are used in Refrigerators.
(2) Compressors, used in Air condition and Refrigerators.
(3) Other Refrigeration parts and accessories, thermostat relays.
(4) E P sheet, M.S. Plates.
(5) Electrical Capacitors.
Outside State Purchases:
(1) Electrical Motors.
(2) Copper tubes, generally used in Refrigerators and other purpose.
(3) Other Refrigerators and parts.
(4) Control valves.
We are selling the aforesaid items locally and outside the State dealers who are Refrigerator Mechanics, dealers, Ice plants dealers, chemical plants dealers".;
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