T.V.S. MOTORS COMPANY LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS appeal is preferred against the orders of the Deputy Commissioner (CT), Anantapur, dated 12.2.2007. The appellant herein is M/s. T.V.S. Motors, Hindupur and they are registered dealers in two wheelers and are registered dealers on the rolls of the Assistant Commissioner (CT)(LTU), Anantapur and the assessment for the year 2004 -05 was completed under the APGST Act, 1957 and aggrieved by the said revision order, they preferred this appeal. The appellant contended on the first sales of two wheelers effected by him against Form 'N'. They produced Form 'N' before the assessing authority but he rejected the forms and subjected the entire turnover to tax @ 12%+1% additional tax and observed that the Forms are not in consonance with G.O.Ms. No. 26, Revenue, Dt. 13.1.2000. The appellant stated that the above CO., was issued by the Government of Andhra Pradesh for promoting the sales of goods within the State of Andhra Pradesh and regarding supplies to the Government Departments i.e., Central & State Governments. The appellant effected sales of two wheelers to Project Directors of Velugu, DPID, Hyderabad, etc., and to Satish Dhawan Space Centre (SHAR), Shriharikota. Velugu is nothing but a project name allotted to District Poverty Initiatives Project of the Social Welfare Department of Government of Andhra Pradesh, and it is not a separate legal entity and the said project was introduced for the upliftment of poor people, but the assessing authority observed that it is a separate organization and required concessional rate of tax. Similarly when the appellant effected second sales of Scooters to Satish Dhawan Space Centre (SHAR), Sriharikota, and obtained Form 'N' and submitted to the assessing authority. He observed that it is only an organization but not a government organization. In fact, the purchase order clearly bears the address of Government of India, Department of Space, Satish Dhawan Space Centre (SHAR), Sriharikota and it was released for and on behalf of President of India. Therefore, it cannot be said that the buyer is an organization and he is not entitled for concessional rate of tax to the supplies made to SHAR, therefore requested the Tribunal to set aside the order of the revisional authority. Apart from that he also stated that the assessing authority at the time of final assessment granted exemption on the turnover issued towards incentives given to the dealers basing on the credit notes. But, it was disallowed by the revisional authority on the ground that no reasons are assigned for issue of the credit notes i.e. sales returns or price variations or discounts. The credit notes are relating to the incentives given to the dealers at the end of the year depending upon their performance and thus the discounts are eligible for reduction from the net turnover. He also relied upon a citation reported in, (1983) 53 STC 48 between Deputy Commissioner of Sales Tax (Law) v. Motor Industries Company of the Hon'ble Supreme Court and also : 65 STC 41 between State of Andhra Pradesh v. T.V. Sundaram Iyengar & Sons and, 37 APSTJ 41 between Godavari Fertilisers & Chemicals Limited and submitted that though the discounts were claimed in the returns, the same are to be granted exemption as per Rule 6(2) of the APGST Rules. The appellant filed all the credit notes before the assessing authority at the time of assessment and the discounts are genuinely passed on to the dealers. Therefore, requested the Tribunal to set aside the order of the appellate authority to that extent.

(2.) WHETHER the sales of two wheelers to the Projector Directors of Velugu and to SHAR., Sriharikota, are entitled for concessional rate of tax as per G.O.Ms. No. 26, Revenue, Dt. 13.1.2000?

(3.) THE Assistant Commissioner (CT)(LTU), Anantapur, Dt. 23.3.2005 observed that the turnover of Rs. 12,48,306/ - represents branch transfers of two wheelers situated at out of state and they were separately assessed under the CST Act and accordingly allowed exemption. The Deputy Commissioner (CT), Anantapur, observed as per G.O.Ms. No. 26, Revenue, Dt. 13.1.2000, concessional rate of tax is allowed only on purchases made by the Central & State Government Departments and specific G.Os., were issued to allow concessional rate of tax on sales made to Projects like 'ADARANA' 'DWAKRA' AND 'APDDC LTD'. On verification of Form 'F' he found that the dealers sold two wheelers to the Project Directors of 'Velugu', 'DPID', Hyderabad and ISRO., Sriharikota, which will not come under the purview of the G.O. He issued notice and it was served on the dealer on 28.3.2006 as the dealer failed to file objections, he confirmed the proposed revision. Aggrieved by the said order, he approached the Tribunal. It is relevant to extract the provisions of G.O.Ms. No. 26, Rev. Dt. 13.1.2000.