KONDA VENKATARAMANAMURTHY AND SONS Vs. STATE OF ANDHRA PRADESH
LAWS(APH)-1969-6-13
HIGH COURT OF ANDHRA PRADESH
Decided on June 12,1969

KONDA VENKATARAMANAMURTHY AND SONS Appellant
VERSUS
STATE OF ANDHRA PRADESH Respondents


Cited Judgements :-

M A E K K VARMA VS. CH.RAMOJI RAO [LAWS(APH)-2013-10-83] [REFERRED TO]


JUDGEMENT

KUMARAYYA,AG.C.J. - (1.)THIS tax revision petition directed against the order of the Sales Tax Appellate Tribunal, dated 16th April 1966, raises a question as to the scope and extent of the benefit conferred by the notification in G. O. Ms. No. 1091, Revenue, dated 18th June, 1957.
(2.)THE petitioners constituting a Hindu joint family firm own oil ghanis or hand oil presses and produce and deal in oil. They also deal in rice, paddy and tamarind. They claimed exemption on the purchase of castor seed and sale of castor oil and castor cakes as they own or have interest in the two oil ghanis, wherein the oil is produced without employing electricity or any other power. But the assessing authority refused to give exemption as they were dealers in other commodities as well and further the business was not carried on by a single person but by the joint family firm. The assessee was unsuccessful in his appeal against the order of the assessing authority. In the further appeal the Appellate Tribunal also on the same ground refused to give them the benefit of the notification and exempt them from payment of tar on their dealings in oil etc. That is why they have come to this court.
Learned counsel Mr. K. B. Krishnamurthi calls in question the decision of the Tribunal on both the grounds. He contends that so far as oil is concerned, the petitioners deal exclusively in the oil produced by the oil ghanis and no other oil is sold by them and hence they are entitled to the benefit of the notification in question. His contention is that having regard to the tenor, purport and language of the notification, it will be sufficient, if the oil sold is the oil produced from the hand ghani, without employing electricity or any other power at any stage of the conversion of the seed into oil. It is immaterial whether or not the person selling such oil is a dealer in other commodities. So long as in relation to the oil sold he is exclusively a dealer in oil from the ghanis or hand presses, he is entitled to the benefit of the exemption warranted by the notification.

(3.)THIS contention was repelled by the Appellate Tribunal on the language and intendment of the notification. Having regard to the tenor of the notification, we are unable to hold that the Appellate Tribunal has gone wrong in this behalf. The notification lays stress upon the dealings being exclusively confined to the products of such ghanis or presses. Only such person or persons as have interest or ownership in the ghanis where oil is produced without employing electricity or any power at any stage of the conversion of the seed into on and deal exclusively in the produce of such ghanis which they own are entitled to exemption. Evidently, if any one of the above conditions is not satisfied, no benefit under the notification can be claimed. As already noticed, it is necessary that the dealer should deal exclusively in the produce of such ghanis. If he deals in other commodities as well he is manifestly out of the purview of the notification. As the petitioners are dealers in other commodities as well, and they do not deal exclusively in the oil produced from the ghanis, they are not entitled to the benefit of the notification. The same view was taken by us in T. R. Cs. Nos. 30 and 31 of 1964 disposed of on 10th June, 1969.
;


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