STATE OF ANDHRA PRADESH Vs. J K AND COMPANY
LAWS(APH)-1992-9-26
HIGH COURT OF ANDHRA PRADESH
Decided on September 08,1992

STATE OF ANDHRA PRADESH Appellant
VERSUS
J K AND COMPANY Respondents





Cited Judgements :-

VENKATESWARA CHEMICALS VS. GOVERNMENT OF ANDHRA PRADESH [LAWS(APH)-2001-7-89] [REFERRED TO]
STATE OF GUJARAT VS. G.M. CHEMICALS [LAWS(GJH)-2014-1-104] [REFERRED TO]


JUDGEMENT

SYED SHAH MOHAMMED QUADRI, J. - (1.)THE question that arises for consideration in this T. R. C. is whether "mineral mixture" is "poultry feed" within the meaning of entry 80 of the First Schedule to the A. P. General Sales Tax Act, 1957 ? The assessee is a dealer under the A. P. General Sales Tax Act. For the assessment year 1979-80, its net turnover of Rs. 5,48,858 included turnover of mineral mixture of Rs. 1,54,297. 95. The mineral mixture was assessed to tax at 4 per cent. as general goods. The assessee contended that the mineral mixture is used only as an ingredient of poultry feed and should be considered as poultry feed within the meaning of entry 80 of the First Schedule to the A. P. General Sales Tax Act. The assessing authority did not accept this contention and taxed the same under the general goods. Appeal against the order of assessment was also rejected by the Deputy Commissioner (Appeal) on May 9, 1983. The assessee then filed an appeal before the Sales Tax Appellate Tribunal. Relying on the judgment of the Gujarat High Court in Glaxo Laboratories (India) Ltd. v. State of Gujarat [1979] 43 STC 386, the Tribunal allowed the appeal of the assessee and directed that the turnover relating to "mineral mixture" be taxed at 1 per cent. under entry 80 of the First Schedule, by its order dated October 28, 1987. It is the correctness of this order that is assailed in this T. R. C. The learned Government Pleader contends that mineral mixture is one of the ingredients of poultry feed and can be used for any other purpose, therefore it should be taxed as a general goods. We are unable to accept this contention.
(2.)THERE is no finding by any of the authorities either the Commercial Tax Officer or the Appellate Deputy Commissioner or the Tribunal that the mineral mixture is being used or can be used for purposes other than the poultry feed. In Glaxo Laboratories (India) Ltd. v. State of Gujarat [1979] 43 STC 386, a Division Bench of the Gujarat High Court held :
". . . . . . . . . . . . In modern times, 'cattle-feed' and 'poultry-feed' include a large variety of concentrates, in addition to roughages, that have a high value because they are rich in easily digested nutrients and feed supplement. Amongst the feeds which are considered essential for the proper nutrition of animals and birds, which are to be kept in a state of efficient production, are included vitamins and, more particularly, vitamins A and D, which have been found to have a profound effect upon livestock farming by increasing the efficiency of animal production and preventing serious nutritional diseases. . . . . . "

In that view of the matter it held that vitamins added to cattle feed and poultry feed within the meaning of entry 25 of Schedule I of the Gujarat Sales Tax Act, 1969, are cattle feed/poultry feed.

(3.)IN State of Andhra Pradesh v. Tirumalagiri Traders [1989] 73 STC 237, a Division Bench of our High Court considered the question whether the mineral mixture should be taxed as poultry feed under entry 80 to the First Schedule of the A. P. General Sales Act or as general goods and held that the Tribunal was right in holding that it should be taxed as "poultry feed" under entry 80 of the of the First Schedule to the Act. We may observe here that the Bench made it clear that should it be found in any case that the mineral mixture could be put to any use other than mixing with poultry feed, it would be open to the assessing authority to take a different view.
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