Decided on May 14,1998



M. Ramakrishna, Chairman - (1.) ALL these appeals are preferred by M/s. Praga Tools Limited, Secunderabad aggrieved against the orders of Appellate Deputy Commissioner(CT), Secunderabad Division, Hyderabad. They relate to the assessment years 1986 -87, 1987 -88 and 1989 -90 under the CST Act. For the sake of convenience, all these appeals are heard together and are disposed off by this common order. The details are as follows: The appellants, M/s. Praga Tools Limited, a Government Company, having its registered office and factory at Kavadiguda, Secunderabad and Forge and Foundry Division at Balanagar, Hyderabad are manufacturers of Machines, Machine -tools, Machine -accessories and Forgings. The appellant company manufactured iron steel and forgings and supplied to M/s. Bharat Earth Movers Limited (hereinafter referred as BEML), Bangalore against the orders placed by them on behalf of Government of India, Ministry of Railways -Integral Coach Factory, Madras. The Commercial Tax Officer, for the Assessment Year 1986 -87 has revised his own assessment order dated 28.2.1997 and withdrew the concessional rate of tax @ four per cent and levied higher rate of tax @ 10 per cent without considering the certificates in Form -D issued by Government of India, Ministry of Railways, Integral Coach Factory, Madras. The Commercial Tax Officer levied higher rate of tax @ 10 per cent on the sale of forgings through BEML for the assessment years 1987 -88, 1988 -89 and 1989 -90 also observing that the 'D' forms issued by Ministry of Railways, Government of India for the sales made to BEML is not acceptable and BEML should have furnished 'C' forms instead of 'D' form of India Railways. Aggrieved against the said orders when the appellant preferred appeals, the Appellate Deputy Commissioner agreed with the view taken by the assessing authority. Hence, the present appeals before us.
(2.) THE point for consideration in all these appeals is whether the appellant is entitled for concessional rate of tax. Reiterating the contentions urged before the lower authorities, it is submitted by the learned authorised representative for the appellant that Bharat Earth Movers Limited (BEML) entered into contracts of enduring nature with the Ministry of Railways/Railway Board for construction and supply of rail coaches. In terms of the contract, the Railway Board authorised BEML to purchase the Iron steel on its behalf. For the purchases that are being made by BEML on behalf of Government of India (i.e., Ministry of Railways), the Government of India have agreed to issue certificates in Forms 'D' for such of those purchases which will involve inter -State sales and the BEML shall pass on the benefits of the concessional Central Sales Tax to the Government of India, Ministry of Railways on the basis of the actuals to be verified by FA & CAO., ICF. The learned Authorised Representative has also submitted the paper book containing the BEML purchase orders and 'D' forms issued and the contract and other documents and relied upon the clauses in the purchase order, more so, on clause 4 and contended that the impugned orders are liable, to be set -aside and the appellant ought to have been taxed at concessional rate of tax.
(3.) ON the other hand, the learned State Representative has relied upon the orders passed by the lower authorities.;

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