HEINZ INDIA PVT. LIMITED Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed against the Orders of Appellate Deputy Commissioner (CT), Warangal in Appeal No. S/16/2005 -06, dated 29 -5 -2006 dismissing the appeal filed against the assessment orders of Commercial Tax Officer, Musheerabad Circle, Hyderabad. The appellant disputed rate of tax on a turnover of Rs. 20,02,94,891/ -. The appellant is M/s. Heinz India Private Limited, Hyderabad. They are on the rolls of Commercial Tax Officer, Musheerabad circle, Hyderabad. During the assessment year 2000 -01, the assessing authority after due verification of the account books, registers and after hearing their Chartered Accountant, passed final assessment order on 4 -3 -2005. The appellant deals in baby food, Complan, Glucon D etc. He levied tax on various items amongst which the question that arises for consideration is in respect of turnovers regarding t(sic)e of Nycil prickly heat powder and Glucon -D. The Assessing Authority (sic) tax @ 205 on the first sales of Nycil prickly heat powder treating as cosmetics and he levied 10% tax on Glucon -D. The assessee preferred appeal before the Appellate Deputy Commissioner (CT), Warangal. In the appeal grounds before the Appellate Authority, the appellant contended that Nycil powder cannot be taxed under entry 36 of the First Schedule and levy of tax at 20% is incorrect and it would come under entry 37 and that it is a drug exigible to tax at 10%. So much so, it has been contended in the grounds that Glucon -D cannot be taxed at 10% treating it as drug, but it is a food stuff for which it is exigible to tax at 8%.

(2.) AFTER hearing the appellant, the Appellate Authority observed that Nycil Powder is a Cosmetic one and it will fall under Entry 36 of the First Schedule of the APGST Act and that the orders of the Assessing Authority in levying tax is proper. It is further observed by the Appellate Authority the argument of the appellant that Glucon -D will fall under item 44 -A of the First Schedule to the Act and liable to tax at 8% read with G.O. Ms. No. 910, dated 31 -12 -1999 is untenable since the Commissioner of Commercial Taxes, Andhra Pradesh, Hyderabad in CCT's Proceedings No. A1/1/686/03, dated 15 -9 -2003 clarified that Glucon -D is a medicine. Hence, in the appellate order, he upheld the order passed by the Assessing Authority.

(3.) NYCIL Prickly Head -powder is used in the treatment, mitigation or prevention of sores, dhobi itch, athlete's foot and prickly heat and not for any of the purposes for which cosmetics are used and its price is regulated, approved and capable of being fixed by the Government as it is covered by Drugs (Price Control) Order, 1970.