STATE OF ANDHRA PRADESH Vs. T T KRISHNAMACHARI AND CO VISAKHAPATNAM

JUDGEMENT

(1.) This revision case raises a point relating to the interpretation of the proviso to section 5(1) of the Andhra Pradesh General Sales Tax Act, 1957. The assessees are the wholesale dealers in biscuits, chocolates, etc., with their Head Office at Visakhapatnam. They are the sole selling agents for South India in Cadbury-fry products. For the year 1957-58, they submitted returns showing a gross turnover of Rs. 7,65,784-04 nP. The Commercial Tax Officer, after granting some of the exemptions claimed, determined the net turnover liable for assessment at Rs. 8,36,953.28 nP. including the turnover of the sale of biscuits and chocolates amounting to Rs. 2,82,037.84 nP. The assessing officer issued a notice to show cause why this turnover relating to biscuits and chocolates should not be taxed at the rate of 3 nP. per rupee. The assessee contended that the turnover of Rs. 2,82,037.84 nP. is exigible to tax at the general rate of 2 nP. per rupee and not at the rate of 3 nP. as they are not articles of food sold at hotels and restaurants and such other places.

(2.) The assessing officer negatived this contention and levied tax "at 3 nP. per rupee on the said turnover. The appeal preferred by the assessee to the Deputy Commissioner of Commercial Taxes was without success. A further appeal was taken to the Sales Tax Appellate Tribunal. The Tribunal reversed the decision of the department in the view that the articles of food sold at places other than hotels, boarding houses, restaurants, etc. were excluded from the purview of the proviso. Dissatisfied with the order of the Tribunal, the State Government has presented this revision.

(3.) As the controversy centres round the proviso to section 5 (1) of the Andhra Pradesh General Sales Tax Act, it is useful to extract it here along with section 5(1).