TMI Blog1996 (11) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... d dealer under the Act, the petitioner obtained a certificate in form G2. Such a certificate is contemplated under section 5B of the Act. Under the scheme of section 5B of the Act, lower rate of tax is required to be collected on the sale of goods from one dealer to another dealer, when the latter purchases (1)Oral Wgoods, as raw materials, for the purpose of manufacturing certain other products. Section 5B of the Act reads as follows: . . . Levy of concessional tax in respect of component parts. (1) Notwithstanding anything contained in this Act, every dealer shall pay tax at the rate of 4 paise in the rupee or at the rates specified in section 5 in respect of goods other than declared goods, or under section 6 in respect of declared g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tificate of registration as manufacturer under section 5B of the A. P. General Sales Tax Act Registration No.: Date: This is to certify that M/s. Sri. . . . . . . . . . . . . . . . . . . . . . (name and style of the business). . . . . . . . . . . . . . . . . . whose principal place of business is situated at. . . . . . . . . . . . . . . . . . .(place). . . . .and who has been registered as dealer under section 12 of the Andhra Pradesh General Sales Tax Act. . . . . . . . . . and whose place of manufacture is situated at . . . . . . . . . . . . . . . . .in the district of. . . . . . . . . . . .has been registered. . . under section 5B of the APGST Act, subject to the following conditions prescribed and the Rules framed thereunder fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tificate in law. It appears during the period relevant for assessment year 2004-05, the petitioner purchased cement worth Rs. 35,31,715 from Cement Corporation of India Limited. The petitioner claimed that such a purchase is required to be taxed at a lower rate of tax, as contemplated under section 5B read with G.O. Ms. No. 496 Revenue (CT.II) Department dated July 17, 2001. The petitioner issued form G declaration, declaring that he is purchasing the cement as a raw material for the manufacture of some product, which is not very clear from the record. However, it is the case of the petitioner that cement was purchased for utilisation in the manufacture of PSCC poles. It is interesting to notice that the said PSCC pole is one of the item ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact, the relevant portion of the said G.O. reads as follows: . . . Provided further that the purchases of cement by manufacturers of finished goods like asbestos sheets, pipes, paint manufacturers using white cement, hallow bricks are eligible for concessiona rate of tax under section 5B if those manufacturers use the cement purchased by them as raw material to produce finished goods for sale. . . . It is the case of the petitioner that PSCC poles are manufactured by the petitioner as part of main activity of the Corporation, as distribution of electrical energy includes establishment and setting up of transmission lines, which are necessarily supported by either metallic or PSCC poles, as claimed by the petitioner. The mention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d March 15, 2005, the petitioner carried the matter in appeal before the Deputy Commissioner, Warangal. The said appeal was dismissed by an order dated June 30, 2005. It must be placed on record that the submissions which are wholly irrelevant for the issue at hand, were made before the appellate authority regarding construction of second proviso to G.O.Ms.No.496 Dated July 17, 2001, which for the reasons already explained earlier, is wholly irrelevant. Apart from that, the legality of the invocation of section 7A was also a ground of attack in the appeal, as according to the petitioner, the existence of specific provision under section 5B(2) of the Act would exclude the operation of section 7A; which according to us is a clear misconcep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company, the Revenue represented by the officers and the appellate bodies. We must place on record our disgust of the state of affairs. Apart from ignorance and lack of commitment on the part of each one of the officers dealing with this matter at every stage, issues such as this, between the State on one hand and a body owned and controlled by the State on the other hand, are required to be settled after appropriate deliberations at the level of the Government, as repeatedly pointed out by the Supreme Court. In the process what is sacrificed is public interest by each one of the personnel concerned on either side of the litigation who draw their livelihood from the exchequer. It all started with the issuance of certificate in form G2 with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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