M. Ramakrishna, Chairman -
(1.) SINCE common question is involved in all these batch of five appeals, they are heard together and are disposed off by this common order for the sake of convenience. The details of the appeals are as follows:
T. As 620/96, 621/96 and 566/96 are the appeals preferred by M/s. Hyderabad Galvanising & Fabrications, R.R. District against the revisional orders relating to the assessment years 1991 -92, 1992 -93 and 1993 -94 and the disputed turnovers are Rs. 6,64,405/ -, 6,96,385/ - and 7,58,075/ - respectively. T.A. 312/96 is an appeal filed by M/s. Deepak Galvanising and Engineering Industries Pvt. Limited, Hyderabad for the assessment year 1995 -96 and the disputed turnover is Rs. 11,99,948/ -. T.A. 151/97 is an appeal filed by M/s. Reliance Galvanising Industries, Hyderabad relating to the assessment year 1995 -96 and the disputed turnover is Rs. 50,64,908/ -. T. As. 620/96, 621/96 and 566/96 are final assessment orders passed, whereas, T. As 312/96 and 151/97 are appeals relating to provisional assessment passed by Commercial Tax Officer, M.K. Street, Secunderabad and Commercial Tax Officer, Ferozguda Circle respectively, who visited the premises of the assessees and noticed certain irregularities in October, 1995. All these assessees are dealing in Fabrication on job work. For the assessment year 1991 -92, which is the subject matter of T.A. 620/96, the assessee submitted monthly returns of their business turnovers in Form A2, as required under Rule 17(i) of the APGST Rules, 1957 and declared the following turnovers.
(2.) WHILE passing the final assessment order on 29.10.1992, after examining the books of account and other papers produced, exemption was allowed on the entire turnover representing labour charge collections. In support of their claim, the assessee has filed work order, bill -wise statement along with xerox copies of relevant documents, some or which have been verified with reference to the books of account and found to be in order. In response to the show cause notice issued proposing gross turnover exemptions, as no objections were filed, final assessment order was passed. Invoking the provisions of Section 20(2) of the APGST Act, the Learned Deputy Commissioner (CT) Rural Division, Hyderabad, after noticing on further verification that some of the material purchased from outside the State amounting to Rs. 6,64,405/ - also used in the job work process during the year and exemption was granted on the value of the same, which was material irregularity and therefore, he issued a pre -revision show cause notice inviting objections of the assessee, who filed objections and after considering the said objections, he negatived the said objections holding that the receipts towards galvanisation cannot be treated as solely of labour charges or service charges of any kind, and since there is a direct relation between the consideration received from and the quantum of zinc transferred to the customers by way of galvanisation and such transfer of material is liable to tax provided the said material has already suffered tax under the Act and transfer by way of galvanisation is of Rs. 6,64,405/ -. Hence, he negatived the objections as not sustainable and the proposal of levy of tax @ 6% + 1/2% + SC @ 10% on a turnover of Rs. 6,64,405/ - has been confirmed directing the Commercial Tax Officer, Ferozguda to give effect to the said order. Aggrieved against the same, the assessee has come to us with the present appeal. Similarly for the assessment year 1992 -93, which is the subject of T.A. No. 621/96 in respect of the disputed turnover of Rs. 6,96,385/ -, the assessing authority after checking all the evidence produced, allowed exemption on the entire turnover of Rs. 47,09,569/ - representing labour charges collections. Invoking the revisional jurisdiction under Section 20(2), after issuing a show cause notice, the learned Deputy Commissioner (CT), Hyderabad Rural Division, Hyderabad in his orders dated 26.4.1996 after considering the objections, negatived the contention and since the material did not suffer tax and transfer by way of galvanisation is of Rs. 6,96,385/ -, the proposal of levy of tax on the said turnover has been confirmed. The Commercial Tax Officer, Ferozguda Circle shall give effect to the order. Aggrieved against the same, the appellant is in appeal before us.
(3.) SIMILARLY for the assessment year 1993 -94, which is the subject matter of T.A. 566/96 relating to the same assessee, the final assessment orders were passed by the Commercial Tax Officer in respect of Rs. 63,31,227/ -, which the assessee claimed exemption towards job -work charges. The assessing authority allowed the claim of exemption on the ground that the assessee was doing only job -work and no sale is involved. Invoking the provisions of Section 20(2) of the APGST Act, 1957, the revisional authority for the same reasons referred to the other assessment years above, revised the orders after following the requisite procedure contemplated under the provisions of Section 20(2) of the APGST Act and negatived the contention of the assessee and held that the material, which was transferred by way of galvanisation is of Rs. 7,58,075/ -, which did not suffer tax under the Act and therefore he confirmed the proposal of levy of tax on the said turnover. Hence, the assessee is before us.;