GOPALAKRISHNA TRADING COMPANY Vs. STATE OF ANDHRA PRADESH
LAWS(ST)-1998-5-15
SALES TAX TRIBUNAL
Decided on May 04,1998

GOPALAKRISHNA TRADING COMPANY Appellant
VERSUS
STATE OF ANDHRA PRADESH Respondents

JUDGEMENT

A. Narasimha Rao, Member (D) - (1.) THIS is an appeal filed by M/s. Gopalakrishna Trading Company, Narsaraopet, against the orders of the Appellate Deputy Commissioner (CT), Guntur, dated 30.3.1996 in Appeal No. 101/95 -96 dismissing the appeal filed against the assessment orders of the Commercial Tax Officer, Narasaraopet in the assessment order No. 16337/94 -95, dated 22.12.1995. The appellant disputed the rebate of tax of Rs. 3,451.00. The appellant is a miller and dealer in paddy and rice etc. In the course of its business the appellant purchased gunnies, got them filled with rice, broken rice, and bran etc., and sold the rice and broken rice so filled in gunnies. The value of the gunnies involved in the sale of rice etc., was assessed to tax at the rates applicable to the contents. While granting the reduction of tax on the purchase of paddy from the tax on sale value of rice the assessing authority has not taken the value of the gunnies into consideration. Since the tax levied on purchase of paddy was higher than the tax leviable on the sale of rice (excluding the value of gunnies) the reduction of tax was restricted to the tax leviable on the sale of rice (excluding the value of gunnies). On appeal the appellate authority dismissed the appeal on the ground that gunnies were taxed under Sec. 6 -C of the APGST Act along with the content and given set -off of tax under G.O. Ms. No. 374, Rev. dated 25.4.1987 and the net result was that the tax on gunnies at the earlier transaction was given set -off and hence the claim of reduction of tax on the value of gunnies is untenable. Hence, this appeal.
(2.) THE point for consideration is whether the appellant is entitled to the relief under Explanation III to the Third Schedule in respect of tax levied on gunnies along with rice in addition to the relief under G.O. Ms. No. 374, Revenue dated 25.4.1987. Under Section 6 -C of the APGST Act where goods packed in any materials are sold or purchased, the materials in which the goods are so packed shall be deemed to have been sold or purchased along with the goods and the tax shall be leviable on such sale or purchase of the materials at the rate of tax if any as applicable to the sale or purchase of the goods themselves. Therefore the assessing authority levied tax on gunnies at the same rate at which the contents were assessed to tax. But while granting reduction or tax on paddy only the turnover relating to rice was taken into consideration and not the turnover relating to gunnies which were assessed to tax at the same rate as that on sale of rice.
(3.) AT the time of hearing the authorised representative has cited the following decisions: - In the case of Sri Ravi Nagabhushanam & Company, Mantripalem Vs. State of Andhra Pradesh, (1990) 10 APSTJ 251 this Tribunal has held that once the turnover of gunnies is held to be covered by Section 6 -C and the same is taxed as part of the turnover of rice, the assessee should have been granted rebate on the total turnover of rice inclusive of gunnies. In the case of Santoshi Modern Rice Mill, Vemuru Vs. State of Andhra Pradesh, (1990) 11 APSTJ 19, this Tribunal has held that when the gunnies are taxed, as part and parcel of rice turnover under Section 6 -C of the APGST Act, the same is liable to be taken into consideration for working out the rebate and were so worked out, the tax levied on gunnies under Section 6 -C of APGST Act will be added to the allowable rebate of tax paid on paddy.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.