KAKANI GROUNDNUT AND OIL MILL Vs. COMMERCIAL TAX OFFICER GUDIVADA
HIGH COURT OF ANDHRA PRADESH
KAKANI GROUNDNUT AND OIL MILL, REP. BY ITS MANAGING PARTNER, KAKANI RAMAMOHANA RAO
COMMERCIAL TAX OFFICER, GUDIVADA
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A.Lakshman Rao, J. -
(1.)The petitioner is a registered dealer. It has been carrying on business by
purchasing groundnut, decorticating the groundnut in its mill and extracting
oil from the groundnut kernel. This writ petition is filed for the issue of a writ
of mandamus "(a) declaring that taxing an item under Sections 6 and 5 of the
Andhra Pradesh General Sales Tax Act is a discrimination and, therefore/hit by
Article 14 of the Constitution of India; (b) declaring that taxing an item under
Sections 6 and 5 of the A.P. General Sales Tax Act amounts to double taxation
and is ultra vires to the said Act and, therefore, illegal and void; and (c) declaring
that groundnut, having been taxed under Section 6 of the A.P. General Sales Tax
Act, cannot be taxed again under Section 5 of the said Act under any other name
like groundnut oil and oil cake."
(2.)Section 6 of the Andhra Pradesh General Sales Tax Act (hereinafter
referred to as 'the Act) provides that notwithstanding anything contained in
Section 5, the sales or purchases of declared goods by a dealer shall be liable to
tax at the rate and only at the point of sale or purchase specified against each
item in the Third Schedule to the Act. Item 6 in the Third Schedule pertains to
"groundnut or peanut". The point of levy, when purchased by an oil miller
other than a decorticating miller in the State, is the point of purchase by such
miller and in all other cases, the point of levy is the point of purchase by the last
dealer who buys in the State. The rate of tax is four per cent.
(3.)Section 5 of the Act provides that save as otherwise provided in the Act,
every dealer shall pay tax under this Act on every rupee of his turnover at the
rates of tax and at the points of levy specified in the Schedules. Item 24 in the
First Schedule refers to groundnut oil. Item 28 refers to oil cakes. These are the
goods in respect of which single point tax is leviable under Section 5 of the Act.
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