MAHENDRA MEDICALS PRIVATE LIMITED Vs. STATE OF ANDHRA PRADESH
SALES TAX TRIBUNAL
Mahendra Medicals Private Limited
STATE OF ANDHRA PRADESH
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J. Shyam Sundar Rao, Chairman -
(1.) THIS is an appeal filed against the Revisional orders of Additional Commissioner (CT), (Legal), O/o The Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad in CCTs Ref. No. L. III(2)/518/2003, dated 26 -7 -2003. The appellant is M/s. Mahendra Medicals Pvt. Ltd., S.P. Road, Secunderabad. The appellant deals in Medical equipment. It is on the rolls of Commercial Tax Officer, S.D. Road Circle, Secunderabad. The Commercial Tax Officer passed final assessment order for the assessment year 1995 -96 under the provisions of CST Act by his order dated 30 -1 -1999 levying tax at 10% on the electronic dental chairs on a turnover of Rs. 11,76,546/ -. Aggrieved by the order passed by the Commercial Tax Officer, SD Road Circle, Secunderabad an appeal was preferred before the Appellate Deputy Commissioner (CT), Punjagutta Division, Hyderabad, the ADC by his order dated 5 -8 -1999 in Appeal No. P/65/99 -2000, has allowed the appeal holding that the electronic goods are liable to tax at 2% only even without the production of 'C declaration forms.
(2.) THE Additional Commissioner (CT), (Legal), O/o The Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad by virtue of powers under Section 20(2) of the APGST Act, having observed that the assessment order passed by the Commercial Tax Officer and as well as the Appellate Deputy Commissioner are irregular and prejudicial to the interests of revenue, issued pre -revision show cause notice proposing to levy tax at 16% on the turnover relating to 'Dental Chairs', calling for the objections of the assessee. The assessee field objections stating that 'Dental Chair' is fully electronised and it helps the doctor to perform various angled operations. However, the Additional Commissioner rejected the contentions of the assessee and levied tax at 16% and directed the Commercial Tax Officer, S.D. Road Circle, Secunderabad to give effect to the revision order. Accordingly, the Commercial Tax Officer implemented the order of the Revisional Authority by his order dated 8 -5 -2003. Aggrieved by the same, the present appeal is preferred before this Tribunal. In the appeal grounds it has been contended as follows:
The Additional Commissioner failed to note that the nomenclature 'Dental Chair' is used since the patient who undergoes clinical examinations of his teeth inside the mouth cavity has to sit on this equipment which is designed in the shape of a chair cum flat bed to facilitate the Dentist Doctor to examine thoroughly from various angles around as well as up and down positions to detect the spoiled portions of teeth, gum and surrounding parts of the inner -cheeks upto esophagus for providing proper treatment or conducting the surgical operation effectively. This 'dental chair' is fully electronised undoubtedly, as such the literature attached would clearly explain how it stores in its memory various positions of operating or clinical testing. The doctor feeds into the key -board provided to the chair and automatically the chair angles take turn and so also the position of the patients within a fraction of time to facilitate the doctors to perform their duties accurately and the patient is always kept in comfortable positions. It is not furniture to bring it under Entry 4A of Sixth Schedule to the APGST Act.
At the time of hearing of the appeal, the counsel for the appellant reiterated the contentions raised in the appeal grounds. It has been contended by the counsel that this dental chair is fully 'Electronised' undoubtedly. The literature attached would clearly explain how it stores in its memory various positions of operating or clinical testing. The doctor feeds into the key board provided to the chair and automatically the chair angles take turn and so also the position of the patients, within a fraction of time to facilitate the Doctors to perform their duties accurately and the patient is always kept in comfortable positions. Its functions of auto position/auto return switch, slit back headrest with pillow, built in lumbar support and lift up/swing out arms promote case of patient entry/exit. It is further argued that the Electronic chair will come under 'medical equipment' under Entry 3.44 of the list of Electronic Commission of India and hence it cannot be construed as furniture to bring it under Entry 4A of Sixth Schedule to the APGST Act but it is entitled to concessional rate of taxation.
(3.) ON the other hand, the learned State Representative contends that it does not satisfy the clauses 1 to 12 of various GOs issued by the Government in respect of goods of Electronic Nature and hence the said chair would come under Entry 4A of the Sixth Schedule, exigible to tax at 16%.;
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