PRAGATHI STRAW BOARDS PVT. LTD. Vs. ESTATE OF ANDHRA PRADESH

JUDGEMENT

(1.) AGGRIEVED by the orders passed by the Deputy Commissioner (CT), Nalgonda Division, Nalgonda in RR No. E3/3/2000 -01, dated 9 -11 -2000, the Appellant M/s. Pragathi Straw Boards Pvt. Ltd., Nereducherla preferred this appeal. The Deputy Commissioner by virtue of powers under section 20(2) of the APGST Act revised the orders passed by Commercial Tax Officer, Kodad circle, Nalgonda Division. The appellants are manufacturers and sellers of straw boards. They are registered dealers under APGST Act and CST Act and they are on the rolls of Commercial Tax Officer, Kodad of Nalgonda Division. Finally, the appellant was assessed for the year 1995 -96 by the assessing authority on the gross turnover of Rs. 71,46,870/ - and net turnover of Rs. 42,78,770/ -. The Commercial Tax Officer while making the assessment found that the turnover of Rs. 31,40,990/ - is exigible to tax at 7% in terms of Notification No. XI of GO Ms No. 252, dated 19 -5 -1995, which came into effect from 1 -4 -1995 (Old GO Ms No. 573, dated 9 -6 -1987) finding that the appellant deals in straw board which is nothing but paper mill. Originally the entry relating to paper mills using straw board, bagasse, waste paper and non -conventional materials etc., is in first schedule under Item 143 prior to 1.4.1995. Later it was shifted to Sixth Schedule under entry No. 19. While so, the Government issued the above GO, extending the reduced concessional rate at 7% w.e.f. 1.4.1995 instead of 12% upon fulfilling certain conditions such as using straw, bagasse, waste paper and non -conventional raw -material prescribing tonnage of production and so much a certificate issued by Central Excise Department. The CTO found that the said GO is applicable to the appellant and made a final assessment, which is as follows:

(2.) BUT the Revisional Authority in exercise of the powers under Section 20(2) revised the order of the Assessing Authority holding that the benefits accorded under the GO are applicable to paper mills and paper -boards manufactured in the State by small paper mills only using straw, bagasse, waste paper and non -conventional materials. But, as the appellant had been dealing in Straw -boards, the said GO is inapplicable to them. The finding of the Revisional Authority is based upon the judgments of this Tribunal in TA No. 462/94 & Batch dated 20 -2 -1999 rendered in the case of M/s. Aruna Straw Boards Pvt. Ltd. v. The State of Andhra Pradesh reported in : (1999) 28 APSTJ 272, the concession can be availed only by small paper units and not to any other units and finally observed that the sales of straw -boards is exigible to tax at 12% but not at the rate of 7%. Hence, he proposed to revise the assessment and accordingly a show cause notice was issued calling for the objections. The appellant putforth his objections. But the Revisional Authority having not agreed with the contentions raised by the appellant and by applying the decision rendered by this Tribunal in the case of M/s. Aruna Straw -boards Pvt. Ltd. v. The State of Andhra Pradesh, reversed the order passed by the assessing authority and passed orders that the net turnover of Rs. 42,78,770/ - is exigible to tax at 12%. The reasoning given by the Revisional Authority is that the judgment rendered by this Tribunal is binding till it is set aside by a superior court. In fact, the submission made by the appellant before the Deputy Commissioner is that the judgment rendered by this Tribunal has been questioned before the Hon'ble High Court of Andhra Pradesh for final adjudication. But the observation made by the Deputy Commissioner on this,' objection is that till the judgment is set -aside, the judgment rendered by this Tribunal in M/s. Aruna Straw -boards Pvt. Ltd. is binding.

(3.) AT the time of hearing of the appeal, it has been submitted by the Authorized Representative for the appellant that originally paper of all kinds at Item 143 to the First Schedule of APGST Act has fixed the incidence at single point taxation. But the system of levy was departed by Act No. 22 of 95 with effect from 1 -4 -1995 by shifting the single point to multi point taxation levy system under Item No. 19 of the Sixth Schedule to the said Act. Here it is pertinent to reproduce the said entries for better appreciation of the case: