AL-KABEER EXPORTS LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THE appellant is M/s. Al - Kabeer Exports Limited, Jubilee Hills, Hyderabad. It is on the rolls of the Commercial Tax Officer, Jubilee Hills Circle, Hyderabad. The Commercial Tax Officer, on the basis of the inspection conducted by the Vigilance & Enforcement Officer/C.T.O., Jubilee Hills, levied penalty for misuse of the diesel purchased by the appellant. Before imposing the penalty, a show cause notice was issued to the dealer calling for his objections. But, the appellant did not file any objections. Hence, penalty was levied for the year 1996 -97 to the tune of Rs. 1,75,616/ - It is further observed that the value of the diesel which is used for purpose other than generation of power is to an extent of 1,13,447 liters the value of which is Rs. 8,78,080/ -. Aggrieved by the above order, the appellant preferred an appeal before the Appellate Deputy Commissioner (CT), Punjagutta Division, Hyderabad. After hearing the Advocate of the appellant, the appellate authority dismissed the appeal with the following observation:

(2.) AGGRIEVED of the above order of the appellate authority, the present appeal has been preferred. In the appeal grounds, it has been briefly contended by the appellant as follows:

(3.) AT the time of the hearing of the appeal, it has been mainly contended by the appellant's counsel that under the G.O., to avail the concession, the unit shall have captive power generation plant. But, it is not necessary that the diesel so purchased at concessional rate of tax shall necessarily be used for power generation only. It is argued that Clause IV of the above G.O., is not in consonance with the object and the purpose of the G.O., for which it was issued.