BHAGYALAKSHMI VEGETABLE PRODUCTS LTD. Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS is an appeal filed against the orders of Additional Commissioner (CT) (Legal), O/o The Commissioner of Commercial Taxes, AP, Hyderabad in CCTs Ref No. L.III(3)/548/2001, dated 7 -6 -2002. The appellant is M/s. Bhagyalakshmi Vegetable Products Limited, Adoni. It is on the rolls of Commercial Tax Officer, Adoni. The appellant manufactures and produces vegetable oil, Vanaspathi etc. The CTO having observed that the appellant misused 'G' forms by making purchase of caustic soda, activated bleaching earth and acids though these products are not enumerated in G2 certificates, levied penalty of five times of tax to the tune of Rs. 9,24,670/ -. This took place during the year 1998 -99. The appellant preferred appeal before the ADC (CT), Kurnool. The ADC having confirmed the view taken by the CTO reduced the penalty to 1/4th of the tax to the tune of Rs. 46,234/ -. The Additional Commissioner (CT) (Legal), by virtue of the powers conferred under Section 20(2) of the APGST Act proposed to revise the order passed by the Appellate Authority having found it is prejudicial to revenue, issued show cause notice calling for the objections of the appellant for misuse of the 'G' forms. However, the Additional Commissioner after hearing the objections, confirmed the orders of ADC as well as CTO, levied penalty of three times of tax to the tune of Rs. 5,54,852/ -. Being aggrieved by the above order, the present appeal has been preferred before this Tribunal.

(2.) IN the appeal grounds, it has been contended as follows. The assessing authorities erred in levying penalty. No penalty is prescribed for goods not mentioned in G2 registration certificate. In the absence of satisfaction of ingredients for levy of penalty, under Section 5(B)(2) levying penalty is unwarranted. Penalty can be levied only for re -sale of goods purchased against 'G' form. The Additional Commissioner failed to follow the decision of this Tribunal in TA No. 847/2000 in the case of Sangam Health Care case. The CTO adopted incorrect rate of tax for corrugated boxes, which is only 4% from 12 -5 -1997 and not 12%.

(3.) THE Learned SR on the other hand supported the order passed by the Additional Commissioner.