COMFORT LINE SYSTEMS PRIVATE LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) TWO short questions that arise for adjudication in this appeal are:

(2.) M /s. Comfort Line Systems Private Limited, Hyderabad is a limited company (for short, 'the appellant') dealing in Air -conditioning and Trading in Electronic goods. They are assessees on the rolls of Commercial Tax Officer, Khairtabad Circle (for short, 'the assessing authority'). Their assessment for the year 1996 -97 was finalized by the assessing authority by order dated 28 -09 -1998 under APGST Act, 57 (for short, 'the Act'). The assessing authority had allowed exemption on certain turnover on the ground that the main Contractor had paid the tax on that turnover and the appellant had not collected any tax. The said turnover related to receipts towards the execution of air -conditioning contracts by the appellant as sub -contractor to the principal contractor. Apart from it, the assessing authority subjected a turnover of Rs. 86,77,770/ - relating to Works Contracts to 1% Turnover Tax under Section 5A of the Act. Taking objection, the Deputy Commissioner (CT)., Punjagutta invoking power under Section 20(2) of the APGST Act, 57 revised the assessment fixing the liability as follows:

(3.) HEARD both sides.