COLFEX LABORATORIES (I) LIMITED Vs. STATE OF ANDHRA PRADESH
SALES TAX TRIBUNAL
Colfex Laboratories (I) Limited
STATE OF ANDHRA PRADESH
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M.Ramakrishna, Chairman -
(1.) THIS appeal has been filed by M/s. Colfex Laboratories (I) Limited, Osmangunj, Hyderabad, against the orders of the Additional Commissioner (CT) and Joint Commissioner (Legal), dated 3.7.1996 in CCT's Ref. L. III (2)/1948/95 revising the appeal orders of the Appellate Deputy Commissioner (CT), Punjagutta Division, Hyderabad, dated 20.7.1992 in Appeal No. C/202/91 -92 filed against the assessment orders of the Commercial Tax Officer, Osmangunj Circle, Hyderabad GI No. 35655/89 -90, dated 22.1.1992. The appellant disputed the rate of tax on a turnover of Rs. 26,63,269 -00. The turnover under dispute related to sales of after shave lotion. The assessing authority treated after shave lotion as falling under item 36 of the First Schedule to the APGST Act relating to cosmetics and toilet preparations. On appeal the appellate authority allowed the appeal agreeing with the contention of the appellant that after shave lotion falls under item 37 of the First Schedule relating to drugs and medicines. The Additional Commissioner (CT) revised the appeal orders restoring the assessment order treating after shave lotion as cosmetic. Hence this appeal.
(2.) THE point for consideration is whether the Additional Commissioner (CT) was not justified in revising appeal orders. After shave lotion has come up for consideration in the case of Sri Pallempati Sambaiah, Tenali v. State of Andhra Pradesh, (1985) 2 STJ 235 before amendment of entry 37 of the First Schedule. It was held that at the relevant time in the assessment year 1975 -76 the amendment by which the extended meaning given to drug and medicines in entry 37 did not come into force and therefore after shave lotion held to be unclassified goods.
(3.) ENTRY 37 was amended as follows with effect from 1.9.1976:
"Drugs and medicines:
(Whether patent or proprietary, as defined in Section 3 of the Drugs and Cosmetics Act, 1940 (Central Act of 1940).";
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