CROWN ESSENTIAL OIL CO. Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) BEING aggrieved by the order passed by the Appellate Deputy Commissioner (CT), Hyderabad Rural Division, Hyderabad, dated 17.5.2001 in Appeal No. R/326/2000 -2001, the present appeal has been preferred by the appellant M/s. Crown Essential Oil Co., Thondapally. The appellant is on the rolls of Commercial Tax Officer, Rajendranagar. The C.T.O., passed the final assessment order dated 8.11.2000 for the assessment year 1997 -98 (CST) levying tax at 16% on the sale turnover of sandalwood chips treating them as timber not covered by 'C' Forms.

(2.) AGGRIEVED by the above order, the appellant preferred an appeal before the Appellate Deputy Commissioner, stating that sandalwood chips would not attract Entry 11A of the VI Schedule to APGST Act, 1957 without any authority of law. But, they shall be classified as general goods falling under VII Schedule to the APGST Act, 1957 if it is not covered 'C' Forms and should be taxed at 10%. But, the appellate authority after hearing the appellant confirmed the order passed by the assessing authority.

(3.) AT the time of hearing of the appeal, it has been contended by the appellant's counsel that Entry 11A of VI Schedule deals with cut sizes of timber, rafters etc., and under any stretch of imagination the same cannot be treated as timber falling under Entry 11A of VI Schedule. It is further contended that the invoices produced also indicate that they have been selling sandalwood chips, which are of thin slices of irregular wood pieces. Under common parlance test nobody would purchase these chips as rafters or beams of timber.