SHA GANESHMAL BABULAL Vs. STATE OF ANDHRA PRADESH
SALES TAX TRIBUNAL
Sha Ganeshmal Babulal
STATE OF ANDHRA PRADESH
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A. Narasimha Rao, Member (D) -
(1.) THESE two appeals have been filed by M/s. Sha Ganeshmal Babulal, Secunderabad, against the orders of the Appellate Deputy Commissioner (CT), Secunderabad Division, Hyderabad in appeals filed against the assessment orders of the Deputy Commercial Tax Officer, General Bazar Circle, Secunderabad. The details are as follows:
The turnover under dispute shown in the Memorandum of appeal under following heads: -
Though the appellant shown Rs. 36,857 and Rs. 15,185 as disputed turnovers they are in effect turnovers on which rate of tax is disputed since no exemption or deduction is claimed on them.
The appellant is a dealer in Kirana, grains, pulses etc. The appellant sold general goods and scheduled goods and maintained only one account for sales and purchases of goods liable to different rates of tax. The assessing authority added profit at 15 per cent in respect of some goods and at 10 per cent in respect of some other goods to the purchases made from outside the State to arrive at the first sales turnover of scheduled goods liable to tax at different rates of tax. The appellant contested the addition on the ground that the percentage of profit never exceeded 10 per cent and therefore profit of 10 per cent might be adopted. The appellate authority rejected the claim on the ground that the statement of income filed before him did not throw any light with regard to the percentage of gross profit and that the authenticity of the statements were doubtful since they were not signed by the appellant or the authorised signatory.
(2.) IT is to be noted that the assessing authority has not rejected the turnovers recorded in the books of account. The assessing authority as also the appellate authority had no material before them to show that the appellant has earned a profit of 15 per cent. In the absence of rejection of books of account the authorities should have adopted the profit as per the books of account. The turnover of Rs. 1,17,119.00 in respect of which the rate of tax is disputed in TA 130/94 relates to the following items: -
(3.) THE turnover of Rs. 1,15,273.00 relating to agarbathi was assessed to tax as "perfumes" under entry 36 of the First Schedule to the APGST Act. In the case of G. Radha Krishna Murthy and Company and Others Vs. The Commercial Tax Officer -IVB, Vijayawada and others : (1997) 24 APSTJ 187, the Supreme Court has held that neither in common parlance nor by the dictionary meaning nor having regard to the context of item 36 of the First Schedule of APGST Act can it be said that "perfumes" would include agarbathis for the purpose of imposition of sales tax and directed the authorities not to tax agarbathis as falling under item 36 of the First Schedule to the APGST Act. In view of this, agarbathis should be treated as general goods during the relevant assessment year.;
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